Secfi Financing Explained for Executives
Secfi’s company friendly financing solution provides cash today for employees to exercise stock options or obtain liquidity without selling their shares.
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Secfi’s company friendly financing solution provides cash today for employees to exercise stock options or obtain liquidity without selling their shares.
Our structure requires no pledge or transfer of shares and abides by all company restrictions. The employee retains full rights and ownership of the shares.
Secfi handles all operational aspects of the financing. We also provide employee education around equity and have in-house financial and tax advisors.
Employees receive cash today and pay back only upon a successful exit in the future so they are not jeopardizing their current financial position nor their financial future.
By exercising today, employees can sell in a potentially favorable tax situation upon exit. Plus, they retain the upside in the shares.
Our structure is constructed to abide by all company restrictions. There is no pledge of the shares nor a transfer of ownership. The shareholder retains full rights and ownership of the shares and has no requirement to deliver shares to us at any point.
The company is not a party to our financing contracts. We view ourselves as a partner to the companies we work with and aim to create a positive relationship for both our companies.
No. The shareholder retains ownership of the shares throughout the financing. After exit, they pay us back in cash and we do not require a transfer of shares before or after exit.
Unlike a sale of shares, our structure does not require a transfer of ownership. Therefore there is no impact on the 409A valuation.
Our contracts require payback after an IPO lock-up period expires or the company gets acquired. Payback is done with cash and employees do not transfer the shares to us at any point.
We only partner with the late-stage startups and evaluate our partners carefully. Our success is tied into the success of the company as well. We always structure our financing with a win-win scenario in mind.
We run a light-touch process that leverages existing materials. We understand that you are building a company and time is a premium.
Our financing offering is for late stage companies approaching exit in the next few years.
We understand that you are building a fast growing startup and we aim to keep our process simple and transparent.
We operate off existing materials and keep company involvement to a minimum. Our process takes 2-3 weeks on average.