Secfi

Secfi is a financial advisory and lending platform for startup employees. It offers non-recourse financing to help employees exercise their stock options without risking their own personal savings. Secfi also provides free equity planning tools to help employees understand their potential tax liabilities (AMT) and exit scenarios.

Secfi does not just connect investors; it lends its own capital. If the company exits successfully, the employee repays the loan plus fees. If the company fails, the employee pays nothing. It is a legitimate financial partner for employees at high-growth startups like DoorDash and Snowflake.

Frequently Asked Questions

1. What is non-recourse financing?

Non-recourse financing means that the loan is secured only by the stock options themselves, not your personal assets (like your house). If the stock becomes worthless, you do not have to repay the loan; Secfi takes the loss.

2. specific fees for financing?

Secfi charges a financing fee and interest that accrues over the life of the loan. However, no monthly payments are required. The total amount is paid back in a lump sum only when there is a liquidity event (IPO or acquisition).

3. Is Secfi an investment platform?

Secfi is primarily a lending and advisory platform for employees. However, they do have a capital arm ("Secfi Capital") where institutional and accredited investors can provide the funding for these loans to gain exposure to pre-IPO equity.

4. Are the planning tools free?

Yes, Secfi's suite of equity planning calculators and tax estimators is completely free to use. You can model different exit scenarios and tax implications without taking a loan.

5. Who qualifies for financing?

Financing is generally available to employees of late-stage, venture-backed startups with a high likelihood of a successful exit. Secfi evaluates the company's risk profile before offering a term sheet.