Equitybee Launches Innovative Fund to Open the Venture Capital Asset Class to More Investors
June 20 2024 - 10:00AM
Equitybee (the Company), a FinTech company and a leading startup
employees stock options funding platform, today announced the
launch of the Venture Portfolio Fund (VPF), providing private
investors with unprecedented access to high-growth, VC-backed
startups through an index-like fund. The VPF allows for strategic
diversification of 120+ Pre-IPO U.S. companies across industry
verticals and technologies.
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 $100M in investments
across more than 730 pre-IPO companies returning an average of
55.5% net realized IRR 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.
"We are excited to launch the Venture Portfolio Fund, which will
allow small- and mid-sized RIAs 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 investments across industries and shorten
time to liquidity,” said Oren Barzilai, Co-Founder & CEO of
Equitybee. "From 2013 – 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.”
Equitybee’s 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 has
stress-tested the model through various methods, including 20,000
simulations and numerous sensitivity analyses.
About Equitybee
Equitybee empowers startup employees by leveraging its investor
network, and 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.
Past performance is not indicative of future results. 55.5% IRR
represents all fully realized Equitybee investments globally
(Israel 6/18 - 12/23; US 3/20-12/23), achieved during favorable
market conditions. IRR is net of all fees for each market,
calculated by transaction from the date funds were received through
the distribution date; annualized if over 1 year. Data does not
represent any portfolio.
Equitybee executes private financing contracts (PFCs), private
placements which fund employee stock options. PFCs do not grant or
transfer ownership of startup company stock, are speculative,
illiquid, and subject to risk including the complete loss of
capital. Diversification does not protect against investment risk.
Please read the private placement memorandum before investing.
Securities offered through EquityBee Securities, LLC, member
FINRA.
Media ContactKris
Pfeifferkpfeiffer@wearecsg.com