Secfi
Equity planning, stock option financing, and wealth management for startup employees.
•26 reviews•248 followers
What is Secfi?
Get equity planning, stock option financing, and wealth management from advisors that know how stock options and equity can help grow your wealth.
Do you use Secfi?
Recent Secfi Launches
Secfi Portfolio A portfolio tracker that doesn’t ignore your private equity
Launched on November 15th, 2023
Equity Planner Create and compare personalized plans for your stock options
Launched on January 25th, 2023
Options Exercise Tax Calculator v2 See how much money you need to exercise your startup options
Launched on September 9th, 2020
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2.76/5 based on 26 reviews
Reviews
•4 reviews
Secfi provides what would otherwise be a helpful service to employees at venture-backed startups: financing of options for exercise.
For employees who want to derisk or don't have the capital, it's a decent option. The problem enters with their terms.
First, you are paying an automated fee every month for basically nothing directly to Secfi. They say it's for their platform and trust management but they literally have to do nothing to earn the fee each month.
Second, the terms of any agreement you get through them are egregious. Not only does the financier share in the upside but they charge a ridiculously high interest fee which compounds. This means you should only receive financing if:
1. There's an IMMINENT exit (< 6 months)
2. The exit is for a very high multiple of what you purchased the shares for.
Otherwise, the interest will eat into your cost basis, leaving you with basically nothing.
This is essentially a lender of last resort and should be treated as such despite their friendly public marketing.
They get to offer predatory terms because there are few financiers operating in this market. It's completely exploitative.