EquityBee

History

2021: Attracting $20 million of investments

At the end of February 2021, Russian AltaIR Capital invested in a fintech service for start-ups EquityBee, which raised $20 million as part of the Series A financing round. In addition to AltaIR Capital, Group 11, Oren Zev Ventures, Battery Ventures and ICON Continuity Fund took part in the round.

The goal of the EquityBee is to increase the awareness of startups about the benefits of using the company's options.

Many of them do not know that they have only 90 days after leaving the project for the sale of securities, and someone does not use this opportunity at all, "explained Oren Barzilai, general director and co-founder of the EquityBee.

The company EquityBee not only trains startup employees, but also provides them with the means to buy their company's options with the help of third-party investors (taking into account the cost of selling options and taxes).

Russian AltaIR Capital has invested in a fintech service for startups EquityBee

Thus, the EquityBee provides capital to aspiring employees so that they can buy stock options. In turn, employees receive money to cover the costs of exercising their options and taxes, and investors who helped provide funding receive income or a share of the profit. The EquityBee itself earns by charging the investor a down payment on the day of the investment and holding the commission after a successful exit or IPO.

Initially, EquityBee was founded in Israel before entering the US market, and in February 2020 its headquarters moved to Silicon Valley. Since then, it has funded employees of "hundreds" of companies, including Airbnb, Palantir, DoorDash and Unity. The amount of funds raised to finance employee options for shares, according to the results of 2020, increased by more than 560%. The total investment in the company amounted to $28.3 million.^[1]

Notes