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.
Our solution is designed with a spirit of partnership. We generate our returns alongside you, and if your shares end up worthless, we assume the risk with no recourse to you.
We provide you with the necessary cash to cover your exercise, AMT and tax liability expenses.
Non-recourse: our financing is collateralized by your stock and not your personal assets. We will never hold your personal assets liable.
Interest: we do not charge interest on the financing.
Financing size: no limit.
Liquidation preference: we require a base return based on the risk profile of the investment, which is typically a multiple on our investment (1x to 2x)
Shared upside: upon an exit of the company, we take a minority % of the profits, while you take the majority.
We understand you are very busy, which is why our financing process is short and simple. Our goal is to send you the cash within two weeks of your initial request.
We will send you a mutual non-disclosure agreement (NDA) to sign.
Once the NDA is signed, we will send you a list of items we need to process the opportunity. They include:
Executed stock option agreement(s)
Latest 409A valuation price
Fully-diluted share count
We will run a simple background and credit check to confirm who you are.
If your application is approved, we will send you a simple financing agreement with our proposed terms.
If agreeable to you, we require you to have the financing agreement signed in front of a public notary.
Once the executed financing agreement is received, we will wire the cash to you or the company.
We require written confirmation of your option exercise from your stock administrator.
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 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.
Connect with Us
Give us a call at (212) 905-8971 or fill out the form below if you are ready to finance your stock option exercise.