Hello world — we’re Secfi

Option exercise is broken

A computer science graduate, I’ve never really enjoyed working for a big corporation so since graduating Cambridge I’ve always worked in start-ups.

Option exercise is complicated

I wasn’t alone in not understanding my equity and the tax implications of exercising my options. I found that the US tax system especially the part revolving around options is extremely complicated. Even worse, there exist no accurate tools which help employees navigate the option jargon jungle. I would find a few tools here and there but they would always be “not tailored for the individual” or contain huge caveats such as “don’t forget about Alternative Minimum Tax when exercising your ISOs”.

The benefits of exercising

Yet option exercise can be hugely beneficial:

  1. Get rid of exercise deadlines. Even though companies have generally improved and extended the amount of time employees have to exercise, options have deadlines whereas shares have not.
  2. Avoid automatic conversion. If you have Incentive Stock Options (ISOs), they will automatically convert into Non-qualified Stock Options (NSOs), 90 days after you have left the company. ISOs have significant tax savings when compared with NSOs

Secfi is the solution

I decided that what the market needs is better products to understand startup equity and better financial products for those with private company stock. At Secfi, we aim to be the company that helps employees and shareholders of late-stage private companies before they are wealthy with:

What’s next?

We’re launching three products today:

  1. Option exercise financing. Our financing covers the entire exercise cost and taxes associated with exercising stock options.
  2. Shareholder loans. Private company stock loans — for each $1 of equity value we can “lend” $0.33 to holders of private company stock of growth and late-stage private companies.

Founder and CEO of SecFi. Helping employees and shareholders of technology companies before they are wealthy.