ESO Fund

ESO Fund provides non-recourse funding to cover the cost of exercising stock options and related AMT taxes for current and former employees of venture-backed companies. If the company does not reach an IPO or acquisition, the user owes nothing. The service was formed by Stephen Roberts, Jimmy Lackie, and Scot, and has been operating since 2012.

Reviewers praise the team for being knowledgeable, professional, and responsive throughout the process of managing stock options. The process is described as smooth, efficient, and hassle-free, with many users noting that the team provided useful insights and guided them toward informed decisions.

The Trustburn rating is 4.1 out of 5 from 9 reviews, with the majority being 5-star ratings from 2022 and 2023. The most recent review from September 2023 gave 3 stars but still recommended the service, while earlier reviews consistently highlighted professionalism and responsiveness.

To get started, users simply need to provide their company name and email address. The process is described as fast and simple, allowing individuals to get started in minutes without complex paperwork.

Common reasons to use the service include not affording the cost of exercising options, having options set to expire after leaving a company, or needing to cover the Alternative Minimum Tax (AMT). Other reasons include breaking 'golden handcuffs' to change jobs or needing liquidity before an IPO lockup.

The funding is provided on non-recourse terms, meaning if the company fails or the stock becomes worthless, ESO Fund will not seek repayment from the user. This eliminates the financial risk associated with exercising options and allows users to retain potential upside.

ESO Fund offers a unique approach by eliminating the Alternative Minimum Tax (AMT) normally associated with exercising stock options. They also provide liquidity for shares users already own, allowing them to recover capital while retaining potential upside.

The company states they have a due diligence strategy and transaction protocol designed to evaluate and close transactions very quickly. Users can request more funding to cover tax needs if they are concerned about high taxes resulting from the exercise.

Some reviewers mention that the process can involve seemingly endless amendments, which can be annoying at times. However, the team is described as patient and dedicated to taking care of users even during these complex administrative steps.

The service is particularly useful for C-level employees who joined late-stage companies where option exercises are expensive. It is also beneficial for those who want to start the clock on discounted long-term capital gains tax rates.

The website mentions a 'FREE newsletter' called ESO's Monthly Start-Up! for those interested in staying updated. The company also provides a link to an overview of their funding process on their FAQ page.

The company has a history of helping employees at 700+ companies since 2012, with a focus on venture-backed startups. They have a team structure that includes management services and investor login capabilities.

Some users on Reddit ask about real experiences with ESO Fund, particularly regarding terms and alternatives for non-recourse funding. Others seek advice on financing stock option exercises for Series B and Series D startups.

The company's website states that they are collecting personal information to support business operations and outlines this in their privacy policy. They also have a blog and team reviews section available for visitors.

ESO Fund is located at 635 Mariners Island Blvd Ste 204, Foster City, California.