EquityBee, a inventory choice market startup, has raised $20 million in a Sequence A spherical of funding.
Group 11 led the financing, which additionally included participation from Oren Zeev Ventures, Battery Ventures and ICON Continuity Fund. It brings the corporate’s complete raised to over $28 million since its 2018 inception.
EquityBee CEO and co-founder Oren Barzilai says his firm’s mission is to assist educate startup workers on the which means of their inventory choices, in addition to present them with funds to have the ability to buy them.
“I’ve seen a lot of my associates and colleagues negotiate a $500 wage improve, however fully disregard their inventory choices bundle, from lack of understanding as a result of complete subject of startup inventory choices being opaque,” mentioned Barzilai, who additionally based Tapingo, which was acquired by Grubhub in 2018 for $150 million. “As a founder I noticed my staff members who helped construct the corporate not participate in our success as a result of they left prematurely and didn’t train their inventory choices.”
The way in which it really works is pretty easy. EquityBee supplies capital to startup workers to allow them to buy inventory choices. The staff get cash to cowl the price of exercising their inventory choices and the taxes. The traders who helped present the funding so they might try this get a return, or a share of the revenue, if there’s “a liquidity occasion.” EquityBee makes cash by charging an upfront payment from the investor on the funding day, in addition to any carried curiosity upon a profitable exit or IPO.
Barzilai mentioned that many workers don’t understand they’ve about 90 days to train choices earlier than they expire as soon as they go away an organization. And even when they do, they could not at all times have the cash to train them. That’s the place EquityBee desires to assist.
The corporate was initially based in Israel earlier than launching within the U.S. market, and moved its headquarters to Silicon Valley in February 2020. Since then, it’s funded workers from “tons of” of corporations, together with Airbnb, Palantir, DoorDash and Unity, with capital supplied by household workplaces, funds and high-net people. Its investor neighborhood is made up of 8,000 funds, household workplaces and high-net price people.
2020 was a superb 12 months for EquityBee, in line with Barzilai, who says it grew by greater than 560% the sum of money it raised to fund worker inventory choices. It additionally noticed a 360% improve within the variety of particular person workers funded via its platform.
Wanting forward, the 33-person firm plans to make use of the cash towards hiring and increasing product choices.
Dovi Frances, founding companion of Group 11, mentioned it doubled down on EquityBee after backing the corporate in its $6.6 million funding round in February 2020 as a result of it’s impressed by what it described as the corporate’s “excellent product market match” and triple-digit progress.
WeWork co-founder Adam Neumann led the corporate’s $1.5 million seed round in September of 2018.