Fintech Company Equitybee to Provide RIAs Greater Access to Venture Investments
Equitybee, a fintech company and a startup employee stock options funding platform, launched the Venture Portfolio Fund, providing private investors with access to high-growth, venture capital-backed startups through an index-like fund. VPF allows for strategic diversification of 120+ pre-IPO U.S. companies across industry verticals and technologies.
“We are excited to launch the Venture Portfolio Fund, which will allow small- and mid-sized registered investment advisers’ access to venture investments for their clients. Adding this high-return asset class, through a diversified index-like portfolio of later-stage startups designed to reduce risk, spread[s] investments across industries and shorten[s] time to liquidity,” said Oren Barzilai, co-founder and chief executive officer of Equitybee.
Equitybee’s Venture Portfolio Fund allows investors to access investments priced at a steep discount to the fair market value by investing through funding employee stock options. With the VPF, investors will have access to 120+ high-growth startups across industries such as tech, AI, aerospace, and other emerging industries.
Since 2018, the company has built a symbiotic relationship with startup employees and investors looking to access pre-IPO venture investments. Through private funds, Equitybee has helped fund the exercise of stock options over $100 million in investments across more than 730 pre-IPO companies returning an average of 55.5% net realized internal rate of return for investments that achieved liquidity.
Reddit (2024 IPO), Instacart (2024 IPO), Stripe, Databricks, and Cato Networks are just a few of the companies that Equitybee’s investors have funded employee stock options.
“From 2013 to 2022, venture capital has on average been the top performing of alternative assets, while being the most difficult to access. The Venture Portfolio Fund now provides that access, at a lower price than is currently available in the market thanks to Equitybee’s unique investment model of funding employees stock options.”
According to Equitybee, its proprietary model leverages multiple data sources, encompassing 24 years of VC return data, based on more than 10,000 data points, across more than 4,600 unique startup companies. The company has pinpointed the optimal asset allocation, by considering both the varying failure rates of startups, and the shortened time to liquidity after each funding stage. Equitybee said they have stress-tested the model through various methods, including 20,000 simulations and numerous sensitivity analyses.
Equitybee empowers startup employees by leveraging its investor network. It provides employees with the funding users need to exercise personal stock options to become shareholders or gain early liquidity. Investors in the company include Group 11, Battery Ventures, Zeev Ventures, LocalGlobe, Latitude, and ICON Continuity Fund.
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