The ESO Fund provides funding for current and departing employees of select venture-backed companies, enabling them to exercise their stock options and pay the associated taxes. Through a unique partnering agreement, the Fund provides employees with the cash required to exercise their options and participates in the upside if the stock gains value through a sale or other event. If the stock becomes valueless, the Fund, not the employee, bears the loss. We provide a clear, straightforward, and employee-friendly approach to exercising stock options without financial stress.The unique structure of an ESO advance also eliminates most if not all of the Alternative Minimum Tax (AMT) normally associated with exercising stock options.
For individuals who already own private stock, the ESO Fund can provide partial liquidity on the same terms which allows the owner to recover capital while still retaining the potential upside from the stock. For private companies that wish to estabish a liquidity program for employees, the ESO Fund's unique cash advance program provides an attractive alternative to secondary buyouts by providing liquidity without introducing the risk of new shareholders to the company. Moreover, using non-recourse advances is financially similar to selling, but it also retains employee loyalty through the preservation of upside potential.
Location: United States, California, San Mateo
Employees: 11-50
Phone:+1 650-262-6670
Founded date: 2012
Investment Type: Venture Capital
Portfolio 1
Date | Name | Website | Total Raised | Location |
23.12.2021 | Automation... | automation... | $1.04B | United Sta... |
Mentions in press and media 8
Date | Title | Description | Source |
26.06.2022 | ESO Fund Raises 5th Fund, at $200M | San Mateo, CA-based The Employee Stock Option Fund closed ESO Venture Fund V, LP, at $200m. ESO pla... | finsmes.co... |
20.09.2021 | Financing Stock Option Exercises In Private Companies: Insig... | Equity comp in private companies can create wealth. But unlocking the value of stock without ... [+]... | forbes.com... |
18.08.2021 | 3 Things Startup Employees Should Know About Stock Options a... | August 18, 2021 5 min read Opinions expressed by Entrepreneur contributors are their own. Stock op... | entreprene... |
30.07.2021 | How AI Is Making Employee Equity More Accessible For Startup... | Two colleagues laughing in a meeting at workThe Gender Spectrum Collection For some people, a singl... | forbes.com... |
08.12.2020 | ESO Fund Raises 4th Fund to help Employees Exercise Stock Op... | SAN MATEO, Calif., Dec. 8, 2020 /PRNewswire/ -- The Employee Stock Option Fund ("ESO Fund&quo... | prnewswire... |
08.12.2020 | ESO Fund : Raises 4th Fund to help Employees Exercise Stock ... | SAN MATEO, Calif., Dec. 8, 2020 /PRNewswire/ -- The Employee Stock Option Fund ("ESO Fund"... | marketscre... |
14.01.2020 | Paper-rich startup employees look for ‘pre-wealth’ help to l... | For Silicon Valley’s potential startup millionaires, compensation packages staked on future promises... | techcrunch... |
06.08.2012 | ESO Fund pools $25M to float former employees exercising sto... | The Employee Stock Option Fund announced today that it has pooled $25 million for its inaugural loan... | venturebea... |