Equitybee is partnering with UI Charitable, a Donor-Advised Fund sponsor built for the way startup employees and founders actually hold wealth. The two companies solve different ends of the same problem. Equitybee helps you unlock the value of startup equity. UI Charitable helps you give from illiquid and private assets. This post is about the second one, and why it matters most in the year your equity pays off.
Palo Alto, CA – Dec 22, 2024 –Equitybee, a leading fintech company that has built a marketplace enabling startup employees to secure funding for exercising their Pre-IPO stock options, proudly announces the formation of its RIA Advisory Board. This strategic initiative is designed to expand access to late-stage pre-IPO investment opportunities within the Registered Investment Advisor (RIA) community, reinforcing Equitybee's commitment to innovation in alternative investments.
The RIA Advisory Board includes a distinguished group of industry leaders whose expertise will guide Equitybee in developing impactful investment solutions. The inaugural members of the Board are:
Founder and Managing Partner, Resolute Partners Group
Founder and CEO, BenFi
Regional Director of Business Development, STRATA Trust Company
Founder and CEO, AdvisorAssist|
Founder and Managing Partner, Streamline Partners
Partner and Head of Distribution, Streamline Partners
Investment Product Consultant, Advisor, and Investor
“At Equitybee, we’ve been privileged to gain significant experience in the pre-IPO market, developing unique investment vehicles that create opportunities for startup employees and investors alike,” said Oren Barzilai, CEO of Equitybee. “The formation of this Board represents a tremendous opportunity to collaborate with seasoned industry leaders to bring these innovative solutions to the RIA community. Together, we aim to help financial advisors unlock high-growth opportunities for their clients while making alternative investments more accessible and impactful.”
The Advisory Board will play a key role in providing strategic guidance, sharing pre-IPO market insights, and fostering best practices for private placement investments. Their efforts will directly support Equitybee’s mission to democratize access to high-growth investment opportunities for RIAs and their clients.
Equitybee empowers startup employees by providing them with the funding they need to exercise stock options to become shareholders or gain early liquidity. Leveraging its investor network, the company has funded employees from 750+ unique startup companies, facilitated 5.6k+ transactions with a total volume of $180M+.
Headquartered in Palo Alto, California, with an office in Tel Aviv, Israel, Equitybee is backed by leading investors including Group 11, Battery Ventures, Zeev Ventures, LocalGlobe, Latitude, and ICON Continuity Fund.
For more information about Equitybee’s RIA Advisory Board or its investment opportunities, visit www.Equitybee.com.
What a Donor-Advised Fund actually is
A Donor-Advised Fund is a charitable account held by a sponsoring 501(c)(3), in this case UI Charitable. Once you contribute assets, you no longer legally own them, which is what makes the deduction work. What you keep is advisory privilege. You advise how the funds are invested, when assets are sold, and which charities receive grants over time. The deduction happens in the year you contribute. The giving to actual charities happens on the timeline you advise, with no required distributions in any given year.
Stage two: this is where UI Charitable is different, and where it fits startup employees
Here is the part that matters for the way you specifically hold wealth.
UI Charitable allows you to donate long-term appreciated assets such as public stock, private stock, cryptocurrency, etc. to a Donor-Advised Fund, and receive a tax deduction equal to the fair market value of those assets. Startup employees are exactly the people whose appreciated wealth sits in private and illiquid form. UI Charitable can serve the asset class most of the giving world cannot.
One important boundary
To be clear about what does and does not apply. You cannot donate shares that are covered securities by the Equitybee agreement and received by using Equitybee stock option funding. You can, however, donate other appreciated assets to UI Charitable.
*This is not tax advice. Consult a qualified tax professional regarding your specific financial situation.
Case Study: A startup employee in California
How does it actually work? A side-by-side comparison of a startup employee in California.
This same example would work for any appreciated asset donated in-kind.
Startup employee in California
Salary: $350K • Private share value: $1M • Shares donated to a Donor-Advised Fund: $300K (30%)
Getting started
get started with UI Charitable by visiting https://www.uicharitable.org/equitybee
