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Financing for holders of private company stock.
Trusted by employees of some of the best companies
Selling caps your return at today's price and triggers capital gains tax immediately — up to 37.1% for a California filer. Financing gets you the capital while your full position stays in the market. If the company 10x's after, you still own the position that 10x'd.
Your shares stay in your name and keep participating in future appreciation. At exit, we take our agreed share of the upside — the rest is yours.
Sell before the 5-year holding period and you can lose QSBS treatment — a federal exclusion that can shelter up to $10M in gains, or more. Financing doesn't break the holding period.
No sale means no taxable event. The tax bill moves to IPO or acquisition; the capital is usable now.
Secured by your shares only. No personal guarantee, no credit check, no recourse to anything else you own.
Share your equity details
1-2 daysEnter your equity details. We model your exercise cost, tax exposure, and exit threshold.
Get your estimate
1-2 daysSee all the numbers in one estimate, including where financing pays off, and fees.
Exercise
1-2 daysGet cash to exercise for liquidity, including all related taxes and fees.
Repay at liquidity
Upon exitSettlement happens upon exit, we calculate the total amount owed. Including the advance rate and equity share.
No share transfer occurs, so company transfer restrictions and ROFR typically don't apply. This works with most late-stage private companies.
$800M
financed*
62K
users*
175
companies with financed employees*
What is Secfi's non-recourse financing?
Non-recourse financing provides cash to help you unlock the value of your equity—whether that's stock options (such as ISOs or NSOs), RSUs or shares—before your company exits.
Here's what makes it non-recourse: you only pay back if your company has a successful exit. If your company doesn't exit successfully, you don't owe us anything. We share the risk with you.
What is the cost of Secfi Financing?
There are a few different fees that make up the cost of financing.
Service fee: A one-time fee for brokering the financing deal for you which is generally 5%. This amount is typically included in the financing amount that we secure for you.
Closing fee: Generally our financing includes opening and maintaining a trust. If your financing proposal includes a trust account, a professional trustee will administer your trust. The trust fees include account opening, account management, and account closure fees.
Advance rate: Pay in kind interest
This is the cost of capital on the advanced amount which helps cover exercise costs, taxes or extra liquidity. It looks a bit like interest. It compounds quarterly and is added to the repayment amount during settlement.
The rates are determined based on the company and your stock options.
We thoroughly underwrite every company before offering financing. Another factor is the specific details of each individual transaction - every person may have different rates depending on their strike price(s), tax needs, etc.
Equity share
The portion of your equity that Secfi Capital funding partners split with you and is calculated as a potion of the value of your shares on exit. The total is calculated at time of exit when you are required to pay the contract back.
How does Secfi make money?
Three components, disclosed up front in your estimate: a platform fee, an advance rate on the capital provided, and an equity share of the value at exit. Our largest fee is tied to your exit value.
Which product is right for me - Financing or Secondaries?
It depends on several factors, such as your desire to retain share ownership, the availability of a secondaries market for your company shares, company policies on transfers, and whether you need funds to exercise your options or are just looking for liquidity. If unsure, our equity strategists can help you decide.