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.
Equitybee is excited to announce the release of the Equitybee 100, an exclusive ranking of the most in-demand private companies, determined by investors on the Equitybee platform in the six months since the 2022 economic collapse*. The list represents a comprehensive view into the most dynamic segment of the economy: startups.
This may sound like familiar territory. Each year, Equitybee issues a list of the 10 pre-IPO companies generating the most interest among our investor network, which spans industries including spacetech, foodtech, consumer tech, enterprise software, fintech and many more. This year, the list has been expanded to include 100 companies. Due to global economic tumult, we have seen major shifts in demand in the startup market among the investor community. Equitybee is here to help you learn more about the sectors and companies that are experiencing peak demand—and ultimately, we’re here to help you make educated investments in these opportunities, in the event that there is limited supply of stock in these companies, or before they go public or get acquired. (By investing on the Equitybee platform, investors are funding the employee stock options; in exchange, investors gain a portion of the future stock value.)
In light of the current economic challenges beginning with Q2 2022, the list of the most in-demand startups among Equitybee’s network of 20,000 investors is being published at the beginning of the quarter rather than at year’s end, to provide a current state-of-the-union perspective, and to give our investor network greater visibility into the most sought-after startups post-market crash 2022.
Investor demand has increased in these companies on our platform, and decreased in others. while the market is in its state of flux, following investors sentiment Equitybee will be focusing on supporting employees from high demand startups.
Without further ado, here is the Equitybee 100:
Here is a verticalized list of the top 5 companies in the most sought-after sectors by investors in the Equitybee Investor Network:
Stripe
Chime
Carta
Plaid
Acorns
Databricks
Cockroach Labs
Checkr
Saildrone
Lacework
Instacart
Master Class
Houzz
Rothy’s
StockX
Gong
Automation Anywhere
BetterUp
CircleCI
LaunchDarkly
Zocdoc
Headspace Health
Carbon Health
Capsule
Curology
Malwarebytes
ThoughtSpot
Docker
Benchling
DataRobot
Note: Equitybee is not affiliated or associated with, or endorsed by, any of the companies mentioned herein; investments subject to availability.
*April 1—September 30, 2022
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
