Everything you need to know about QSBS

Introducing Startup-Backed Lending

1 MIN READ17 JAN 2023
Product

Compound can now help you source and evaluate loans backed by your pre-IPO startup equity. [0]

People who work in technology often have high net worths on paper, but have limited access to liquidity for their day-to-day lives. Lenders typically require significant collateral, so if you don’t own a home or a large portfolio of public stocks, loan options are quite limited.

Startup-backed lending allows you to borrow money using your private company equity as collateral—so you can gain liquidity now without selling any of your shares. If the company fails, the borrower doesn’t owe anything out of pocket.

Compound clients can work with their financial advisors to source, analyze, and compare loan options from third-party lenders, who typically prefer to lend against later-stage companies with strong financials.

And because startup-backed lending is available through the Compound Platform, you can instantly understand what liquidity you qualify for, and matching your equity with an interested lender is taken care of.

Startup-backed loan services are available to any Compound client working with a financial advisor.

Compound Team

[0] Compound is neither a licensed lender nor a law firm, but we can help you assess whether these loans make sense for you.

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