If you hold a lot of stock in a private company that will eventually go public, can a bank issue you a loan against your private RSUs / stock options? If so, are there any banks that do that? It would be a similar concept as portfolio line of equity, but for private stock. #stocks #investments
Check equityzen like sites to see if you can sell outright
So you're looking for a bank to give you a loan on rsus that are 1. Not liquid and 2. Will likely be worthless/pennies on the dollar? 🤔
I think it would be reasonable for some banks to loan based on a select number of late stage private companies that they believe would one day IPO. Of course, the added risk would be accounted for in the loan amount. I mean, how do founders have so much cash on hand when their salaries are relatively low? I can't see any other way other than loans against equity in private stock.
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Private stock is not liquid so cannot be used as collateral.
how do so many of the late stage private startup founders have so much cash then?
They sell