EQUITYBEE’S 2022 ANNUAL REPORT:
According to Investors and Startup Employees
At Equitybee, we’re constantly working to identify new market trends and investor demand. In light of the 2022 market volatility, we conducted comprehensive surveys to better understand the current state of the startup ecosystem...
STATE OF THE UNION:
of employees working for 2+ years at a startup received more than one employee stock option grant.
was the average option grant size, with a median size of $80K.
Are startup employees negotiating their options grants?
did not know that it was possible to negotiate.
negotiate their salaries.
negotiate their option grant.
The more you know…
of employees do not know what percentage their options represent.
of employees do not know the value of their options.
of employees do not have enough information to decide to exercise their options.
Is equity a motivating factor in startup employment?
of employees agree that options increase their sense of belonging at their company.
agree that options can impact their financial future.
are motivated to work harder when they receive options.
Given the current market...
prefer a higher salary with a smaller option grant.
do not fully exercise their options due to risk.
Lack of transparency and knowledge prevents some startup employees from exercising their options. This ultimately causes startup employees to lose out on participating in the success of the companies they helped build and also a potentially positive change in their financial future.
In the startup ecosystem, it’s not uncommon for employees to miss out on becoming shareholders in their companies that they’ve helped build due to the lack of capital. At the same time, startups are staying private longer, causing much of their growth to take place while they are inaccessible to most investors.
Equitybee resolves both of these issues by matching our investor network with startup employees to fund their options - in exchange for a percentage of the shares upon a successful liquidity event.
Securities offered through EquityBee Securities, LLC (“EBS”), an affiliate of Equitybee, Member FINRA. EBS does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. You can learn about EquityBee Securities on BrokerCheck.
This website is intended solely for accredited investors. Investments in private offerings, and startup investments in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in such offerings. Companies seeking startup investments tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Additionally, startup employees’ options and equity (once options are exercised) may be subject to blackout periods or other restrictions including holding period requirements. Investments in early-stage private companies should only be part of your overall investment portfolio. Furthermore, the allocation to this asset sub-class may be best fulfilled through a balanced portfolio of different start-ups. Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.