HACKER Q&A
📣 equityloanq

Who offers loans on startup equity?


Hi all,

I'm looking to take out a $250k loan that uses some startup equity I own as collateral (the FMV of that equity comes in at ~$650k).

For what it's worth, the company is 4-5 years old and isn't a brand name like, e.g., Uber. That's to say I'd expect industry knowledge would be required to fully appreciate the value of the equity (e.g. investor names, usage metrics, etc).

Who offers loans of this kind?

I don't imagine I can, e.g., walk into my local Chase branch and strike up a good loan for this, right?

Thanks!


  👤 smt88 Accepted Answer ✓
Is the equity transferrable? Can it be "repossessed" by a bank if you default? The legal structure of the startup is important here and may be preventative.

👤 mtmail
Is the loan for you personally or for the company? There are a couple of services that specifically give loans to startups based on their recurring revenue (usually need access e.g. to Stripe).

https://venbridge.com/growth-capital/software-as-a-service-r...

https://flowcap.com/revenue-based-financing/


👤 toomuchtodo

👤 forgotmysn
unless you work at a unicorn and are fully vested, i would imagine you would find this very difficult.