Stock Option Exercise Financing Platform

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Stock Option Exercise Financing Platform

Inspired by a conversation on:

The Meb Faber Show - Better Investing

The Meb Faber Show - Better Investing

Turning Expiring Options Into Venture Exposure [Vested’s Dave Thornton] | #597

Host: Meb Faber

Timestamp: 00:01:31 - 00:02:25

Listen to Episode • View Podcast • All Ideas from The Meb Faber Show - Better Investing

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Direct Quote

"What we do for the rank and file employees of VC backed startups is we provide capital to them to help them exercise their expiring options."

Market Gap

Startup employees often abandon valuable stock options due to lack of cash.

Many startup employees who leave their companies face a critical issue: they have a limited window, typically 90 days, to exercise their stock options. However, they often lack the necessary funds to do so, which leads to a significant number of unexercised options. This problem disproportionately affects rank and file employees who may not have substantial savings, resulting in billions of dollars in unexercised options annually. Current solutions are primarily geared towards higher-income individuals and do not address the needs of these employees, leaving them to either forfeit their options or seek complicated and often inaccessible financing options. The cost of inaction is high, as it not only represents a loss of potential wealth for employees but also a missed opportunity for companies to foster goodwill and loyalty among their former workforce.

Summary

The proposed business idea is a financing platform that provides funds to startup employees to exercise their stock options before they expire. By offering quick access to capital, the platform enables employees to convert their options into shares, thus ensuring they do not lose out on potentially valuable equity. This service would target employees of VC-backed startups who typically struggle to find the cash required for exercising their options. The platform could employ a simple application process where employees submit their stock option details and receive funding based on the fair market value of their shares. The platform would then take a percentage of the shares as compensation for the financing, thereby aligning interests between the company and its former employees. This service not only helps employees secure their financial future but also enhances the company’s reputation as an employer that cares about its workforce.

Categorization

Business Model
SaaS
Target Founder
Generalist
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000-$10,000

Scores

Clarity
8/10
Novelty
7/10
Feasibility
8/10
Market Potential
9/10
Evidence
8/10
Overall
8/10
Found on September 12, 2025 • Analyzed on September 12, 2025 9:17 AM

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How should I validate this saas idea before building it?

2:34 PM

Great question! For a saas idea like this, I'd recommend starting with these validation steps:

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