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One thing I've never understood about this: why on earth aren't there financial products specifically for people in this situation? Especially around Silicon Va
by sopooneo 4y ago
One thing I've never understood about this: why on earth aren't there financial products specifically for people in this situation? Especially around Silicon Valley?
Bankish Corp floats you the tax bill at some mutually beneficial interest rate, and in return gets a signed repayment guarantee for when you can actually cash out?
- RandallBrown 4y agoThat does exist. I was able to do that with options at my last job with Carta.
- mcherm 4y agoWell, it might be a good idea, but there is a lot of risk. There is, for example, a risk that the employees get utterly screwed and are never permitted to cash out.
- madaxe_again 4y agoThat isn’t a risk. That’s a near certainty.
- deleted 4y ago[deleted]
- gadders 4y agoYou can price risk. People buy distressed debt. No reason why they wouldn't buy illiquid private company stock (at a discount the holder might not like obviously).
- bagels 4y agoThere are, I think. Forge global and others have services like this.
- mytailorisrich 4y agoYou mean a loan? I think banks do that ;)
- sopooneo 4y agoYou're right, I guess it would just be a loan with interest rate and terms fit for the risk. But I wonder if the financially rational terms might fall afoul of usury regulations or something. So I wondered if the lender would have to structure it other than a simple "loan" to get around that. But I'm deeply ignorant of that world so may be making this much more complicated than it actually is.
- orenbarzilai 4y ago[flagged]