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ESO Fund's website doesn't mention about their cut in case of liquidity event. Do you happen to know how much is it?
by bankim 10y ago
ESO Fund's website doesn't mention about their cut in case of liquidity event. Do you happen to know how much is it?
- mcpherrinm 10y agoI think they price depending on the company and its situation and risk. I've heard of them taking half the proceeds, though.
- chrdlu 10y agoYou are correct! Our pricing depends on a bunch of factors including how much money it takes to exercise the shares and what we think the company can exit at. We aim to take less than half the proceeds. Sometimes if the exercise cost is higher and the exit isn't as high as we anticipate, we may end up taking more than half. For the most part, our business is a referral business and happy clients means they will refer their friends/co-workers.