EquityBee, a U.S.-based startup employees’ stock options funding solution provider, announced on Tuesday it secured $20 million through its Series A funding round, which was led by Group 11 with participation from Oren Zeev Ventures, Battery Ventures, and ICON Continuity Fund. EquityBee reported that the investment round brings its total funding to $28 million.
Founded in 2018, EquityBee is on a mission to allow startup builders to participate in the “success of the company” they helped build by providing them with the “best” funding solution to exercise their stock options.
“EquityBee enables startup builders, the employees, to exercise their stock options which allows them to benefit from the value they’ve created while employed at the company.When they are about to leave their company, and have a time-sensitive decision regarding their Employee Stock Options Plan (ESOP), EquityBee is there to help. EquityBee’s Investor Community provides startup builders the capital they need to become shareholders in return for a share in their potential future gains.”
EquityBee further revealed it saw high triple-digit growth in 2020, growing capital raised to fund employee stock options by over 560%, and number employees funded through the platform by over 360%. The company’s Investor Community, which notably consists of family offices, funds, and high net-worth individuals, grew by 700%. Oren Barzilai, CEO of EquityBee, then stated:
“2020 was a big year for tech and created a lot of interest from investors looking for alternative ways to invest in pre-IPO company stock. This year’s events showed the importance of employee stock options and the potential for startup builders to own their hard earned equity and participate in the success of the companies they helped build.”
Dovi Frances, Founding Partner of Group 11, then added:
“EquityBee’s scalable tech solution has the potential to help millions of tech employees gain access to liquidity in a market otherwise set up against them. Our decision to double down on EquityBee is an easy one and we are pleased to continue supporting the company.”