Secfi Secures $150M Investment Facility For Stock Option Financing Platform

Secfi, a pre-wealth management platform, has secured a second investment facility from Serengeti Asset Management for $150 million.

What Happened: Secfi provides equity planning tools that help private company shareholders and professional advisors make better decisions for their equity, from offer to IPO.

Presently, the company works with employees from 80% of all U.S.-based unicorn technology companies and has over $10 billion in stock options registered on its platform.

In a move to expand its platform to stock option financing for executives and employees, the company added a $150-million facility from New York-based investment firm Serengeti Asset Management.

The development comes after the success of Serengeti’s first $550-million facility in January 2020.

"We’re thrilled to partner once again with Serengeti," said Frederik Mijnhardt, CEO of Secfi.

“This new capital is earmarked for very late-stage private companies on the path to exit. While exercising early is the ideal situation, we have seen a 5x surge of late-stage employees coming to Secfi to explore financing options before IPO and decided to expand our pool of capital to better meet their needs and accelerated timelines.”

Why It Matters: Recent go-public trends resulted in life-changing financial windfalls for many private company employees.

Still, Secfi believes a lot is left on the table by those who do not exercise their pre-IPO stock options. According to Secfi, employees at late-stage companies who wait to exercise face higher costs as valuations increase.

With new funds, Secfi will be able to educate and assist more employees in optimizing the value of their stock options before exit.