Our Story
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.