EquityBee is a marketplace that connects startup employees who want to exercise their stock options but lack the cash with investors who fund the exercise cost (and sometimes the tax) in exchange for a share of the future proceeds. We are not affiliated with it, and terms change — check directly.

Should I use EquityBee to exercise my options?

It depends. Funding can let you exercise options you couldn't otherwise afford and avoid letting them expire, but you give up a share of the upside — so it mainly makes sense when your conviction in the company is high. Model the exercise cost and tax, compare it with exercising less or waiting, and take advice first.

What should I prepare before using an option-funding marketplace?

Know your grant type, how much is vested, your strike price and any exercise deadline; work out the full exercise cost including AMT or income tax; and understand exactly what the funding costs you on both good and bad outcomes. Go in with your own numbers.

Exercising & financing

Preparing to use EquityBee — what to get ready first

EquityBee is about the cash side of equity — funding the cost of exercising your options. Here's what to understand before you engage.

Written & maintained by the PrivateTechShares team · Published November 2026 · Reviewed November 2026

Part of our guide to what it costs to exercise your options.

EquityBee is a marketplace that connects employees who want to exercise their options but lack the cash with investors who fund the exercise (and sometimes the tax) in return for a share of the future proceeds. We're not affiliated with EquityBee, and the exact terms change — check directly. This is an independent guide to getting ready.

When this kind of help is relevant

It's aimed at employees who have vested options worth exercising but not the cash — or who face a large tax bill to do it. Investor funding can cover the strike and the tax so you don't pay out of pocket, in exchange for a slice of the upside if the company has a good exit. It can unlock an exercise you couldn't otherwise afford — but the funding isn't free, so the terms are the whole story.

What to get ready first

Know your grant — ISO vs NSO, how much is vested, your strike price, and any post-termination exercise deadline (often ~90 days).
Work out the exercise cost — strike × shares, plus the AMT or income tax at exercise. That's the number the funding is meant to cover.
Understand the terms — what share of the upside you give up if it goes well, and exactly what happens if it doesn't. Model the net, not the headline.
Be honest about conviction — funding an exercise is a bet on the company. Size it to how strong that bet really is.

Weigh the cost against the alternative

Funding shifts the risk and cost of exercising — it doesn't remove them. For some people it's the only way to avoid letting valuable options expire; for others, exercising less, or waiting, is cheaper. There's no universal answer — model your own numbers and take advice before committing. (See what to do when you can't afford to exercise, and preparing to use Secfi.)

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