Stock options platform Equitybee has launched a new “Equity Value Finder,” a service designed to provide a market value for private shares.
Pricing private shares has always been a challenge as you do not have a highly liquid marketplace to set a value as you do with publicly traded firms. Equitybee states that employees holding shares in an early-stage firm can now receive a better perspective on the value of those shares as well as compensation.
Oren Barzilai, co-founder and CEO of Equitybee, said the service provides the knowledge and transparency for employees to make better decisions about stock options.
“Big tech public companies’ employees have clear visibility to the value of their stock grants; why should private startup employees be different?” said Barzilai. “For the first time, we are leveling the playing field and providing startup employees with the estimated market value of their stock options.”
The service is said to provide a market value estimate based on the number of shares and options an employee owns, using Equitybee’s proprietary model of trade data, valuations, and market sentiment. After submitting the number of options, the employee can see an estimate of the equity value, including any funding opportunities available through the platform.
Equitybee notes that the Equity Value Finder is for informational purposes only and is not a recommendation to exercise stock options, obtain liquidity, buy, sell, or hold any security.
