Employee Capital Partners (ECP) is a firm that provides capital to employees to cover the costs associated with exercising stock options. We partner with current and former employees at high-quality venture-backed companies, enabling them to benefit from the gains on their stock options, without having to invest their own capital. 

By having us cover your exercise and taxes, you are free to spend your hard-earned money on what is most important to you.

 
 

Your stock options hold value, don’t let them lapse

You have worked hard to earn your vested stock options, and now it is time to exercise and buy real equity ownership in your company.

However, it can be risky to do so. The cost of exercising plus any tax liabilities can require a large investment today, without the promise of a return.

Two questions often arise in this situation:

"What if I exercise my options and the stock ends up worthless?"

"What if I don’t and the company ends up having a successful acquisition or IPO?"

This is the dilemma we help you solve. ECP covers the cost of exercising plus your tax liabilities. We take on the downside risk, and participate with you on the upside. Don’t let your stock options lapse.

There are also potential tax benefits to be captured:

  • Incentive Stock Options (ISOs): if you hold your shares for at least two years after the grant date and at least one year after the exercise date, you qualify for long-term capital gains tax treatment on the spread between the sale price and your exercise price.

  • Nonqualified Stock Options (NSOs): if you hold your shares for at least one year after the exercise date, you qualify for long-term capital gains tax treatment on the spread between the sale price and the fair market value (FMV) at the time of exercise.


Our Solution

Our financing solution is designed with a spirit of partnership -- we generate our returns alongside you.

Our Process

A short and simple process designed for you to receive the cash you need within two weeks of your initial request.

FAQs

Find out about the most frequently asked questions regarding stock options, taxes, and your exercise.


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Zach Veenstra

Zach is the Founder and Managing Partner at ECP. Prior to ECP, Zach was on the investment team at TVC Capital where he focused on investments in and acquisitions of growth stage B2B and enterprise software companies. While working with growth stage companies at TVC, Zach saw multiple occasions where employees let their stock options expire because they simply could not cover the upfront costs and bear the uncertainty risk. Recognizing the need for a solution to help employees in this situation, Zach started ECP. ECP is funded by investors who are equally passionate about helping employees convert their hard earned options into real equity ownership.

I am one of those successful career people that really is not great with personal finances. So when it came time for my first IPO, I needed some help to navigate the stock buy and IPO process and details. I was nervous that these “finance guys” contacting me left and right were in it to scheme me. Then along came Zach and ECP. We took our time getting to know each other and I asked a million questions. He always had time for me to explain, then re-explain some of the complexities. At the end of the day, it was about trust for me. I trusted Zach and the plan we developed and knew he had my interest at the core of the conversations. I learned a lot through this process and am grateful for crossing paths with ECP to help me during this important, once in a lifetime, financial milestone.
— Former Stitch Fix Executive