Case Study: Betterment unlocks employee liquidity with Secfi

Betterment unlocks liquidity with Secfi’s no-pay-until-exit financing

Betterment, a financial technology company, faced the challenge of providing its early-stage employees with a way to access liquidity from their private company shares without assuming personal financial risk. To address this, the company partnered with vendor Secfi, which offered its non-recourse financing product. This service allowed employees to borrow against their shares or get cash to exercise options while retaining full ownership.

Secfi's solution provided employees with immediate liquidity and significant downside protection, as the financing is only repaid if Betterment has a successful exit event like an IPO. The results included enabling employees to optimize their tax situations, diversify their personal investments, and manage risk, all without any upfront payments or personal liability. Secfi's thorough due diligence on the company ensured the financing terms were appropriately structured for both the employees and the vendor.

Betterment