Secfi Review 2026: How the Stock Option Financing Works, What It Costs and Who It Suits
Secfi arranges non-recourse financing for employees of late-stage startups: cash to exercise stock options or against shares they hold, settled at an IPO or acquisition by repaying the advance, an advance rate that compounds quarterly and an equity share of the shares' exit value, after a platform fee of up to 5%. Secfi's investor page says the equity share is charged on the full pool of pledged shares while advances run at 20 to 50 cents per dollar of underwritten value, which does most to decide what an employee gives up in a strong exit. Rates are set per company and person in a proposal, and the money comes from institutional investors, including Secfi-managed funds.
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What the data actually shows - TL;DR
Secfi, operating since 2018, gives employees of late-stage private companies cash to exercise options or against shares they already hold, without selling them. The contract is a private securities contract, not a loan: at an IPO or acquisition the employee repays the advance, an advance rate that compounds quarterly and an equity share of the shares' value at exit, and, as Secfi describes it, owes nothing if the company never exits.
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The equity share is what matters most: Secfi's investor page says it is charged on the full pool of pledged shares, and advances run at 20 to 50 cents per dollar of that pool. Rates are set per company and person, so the proposal is where the cost is decided, and comparing proposals is part of using the product. It suits employees of large late-stage companies who expect a strong exit and want to keep their position; below roughly two to three times the current value, selling the same cash's worth of shares can leave an employee better off, at the illustrative rates AltStreet used. Secfi's broker-dealer and advisers have clean records, two of the three funds on its adviser's latest Form ADV report audits, and its Reg BI FAQ states the conflicts of its structure plainly.
Secfi's investor page: the advance is '20 - 50 cents on the dollar relative to Secfi's underwriting' and the equity fee 'is due over the full collateral pool', so the equity share applies to every pledged share, not only those the advance paid for.
Exit value, as a multiple of the shares' current value, above which financing leaves more than selling the same cash's worth of shares today, in AltStreet's illustration at hypothetical rates (8% advance rate, 20% equity share, two to four years). Below it, the seller keeps more.
Advance rate and equity share are set by company and person and stated in each proposal, which Secfi says shows the exit price at which the financing pays off. The platform fee is 5% (or 'generally up to 5%'), $5,000 on $100,000 in Secfi's own example.
As Secfi describes it: nothing owed without an exit, and the obligation limited to the shares, 'except when in breach of contract'. AltStreet did not see a contract.
Disciplinary disclosures for Secfi Securities (FINRA CRD 302112), Secfi Advisory Limited (CRD 306961) and Secfi Limited (CRD 289793); all nine Form Ds of Secfi-named vehicles filed on time.
Secfi's funds are open only to qualified purchasers and institutions; its three investor pages end in a contact form, with no terms or documents. Not a product for retail investors.
Terms and claims from secfi.com as displayed October 26, 2026. The worked table and the 2.3x to 2.7x range use rates AltStreet chose for illustration (8% a year compounding quarterly, a 20% equity share, a 5% platform fee inside the advance), pre-tax and before trust fees; Secfi's actual rates are set per proposal. Fund figures from the Form Ds (amount sold as reported) and Secfi Advisory Limited's Form ADV of June 30, 2026.
Quick Verdict
Is this platform right for you?
Secfi offers something employees of late-stage startups need: cash to exercise options or diversify without selling, with no repayment if the company never exits, as Secfi describes the contract. The price is set in each proposal, and the term that matters most is the equity share, which Secfi's investor pages say is charged on the full pool of pledged shares.
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At illustrative rates, that makes financing better than selling the same cash's worth of shares only in a strong exit. Secfi's regulated entities have clean records, two of the three funds on its adviser's latest Form ADV report audits, and its Reg BI FAQ is candid about the conflict of arranging contracts with funds its own adviser manages. Its marketing is less careful: the performance claims have no stated basis, and one page's balance-sheet statement is not reconciled with the institutional structure described elsewhere.
Best for
- Employees of large late-stage companies who expect a strong exit, want to keep their shares, and will compare Secfi's proposal with selling and with another provider's proposal.
Avoid if
- You expect a modest exit or need certainty.
- You are a retail investor looking to invest.
- Your company is early-stage.
Top strengths
- Non-recourse structure as Secfi describes it: nothing owed without an exit.
- Clean records for the broker-dealer and both advisers; all Form Ds timely.
- Candid conflict disclosure in the Reg BI FAQ and Form CRS.
- Two of three funds on the adviser's Form ADV audited by RSM; SS&C administers all three.
- Fee-only wealth management with a published fee schedule.
Key limitations
- Equity share charged on the full pledged pool, stated on the investor pages rather than the employee pages.
- Rates set per proposal; comparison requires several proposals.
- Broker and investor-side adviser under one parent; the employee is not the advisers' client.
- Performance claims without a stated basis; a balance-sheet statement not reconciled with Secfi's other disclosures.
Compare Before Deciding
Where Secfi fits against alternatives
Use these hooks to pressure-test whether this is the right platform, or whether a nearby alternative matches the job better.
How this compares to Equitybee Review
Equitybee Review
Stock option funding through investor-backed series LLCs, with interest and an equity share at exit.
How this compares to EquityZen Review
EquityZen Review
Pre-IPO secondary marketplace for selling or buying private company shares through funds.
How this compares to Forge Global Review
Forge Global Review
Listed pre-IPO marketplace and data provider.
Full pool
The equity share is computed on all pledged shares, with advances of 20 to 50 cents per dollar of underwritten value.
Stated on the investor pages; the employee pages describe it as a percentage of the shares' value at exit.
2.3x to 2.7x
Exit multiple above which financing leaves more than selling the same cash's worth of shares, at AltStreet's illustrative rates.
8% advance rate compounding quarterly, 20% equity share, two to four years; pre-tax. Actual rates are in each proposal.
Quick Answers
What most investors want to know first
The highest-signal facts first: minimums, liquidity reality, K-1 timing, and whether distributions are actually part of the experience.
Liquidity
Secfi brokers sales of employee shares; it is not a marketplace and does not buy shares itself.
K-1 Timing
Not stated for the funds.
Distributions
After IPO lockups or acquisitions, which Secfi expects within about five years.
Overview
Platform Overview
A concise read on what the platform is, how the structure works, and where the practical friction shows up for real investors.
Secfi, Inc. runs secfi.com, where employees of private technology companies enter their equity, model taxes and exercise scenarios (lately with an AI assistant, Maeve) and request one of three services. Secfi Financing: a non-recourse private securities contract under which an investor advances the cost of exercising options, including taxes, or cash against shares already held, and is repaid at a liquidity event out of the shares' value; Secfi Securities, LLC, a FINRA broker-dealer, arranges each contract and earns the platform fee. Secondary sales: Secfi Securities brokers a sale of the employee's shares to buyers in its network for a 5% fee.
Secfi Wealth: fee-only financial planning and investment management from Secfi Advisory Limited, an SEC-registered adviser, with accounts held at Altruist or Schwab. On the other side, Secfi Advisory Limited and Secfi Limited advise the investors that fund the contracts, including Secfi's own funds, which rely on Investment Company Act section 3(c)(7) and are offered only to qualified purchasers. A retail investor cannot invest through Secfi; the retail customer is the employee.
Serengeti Asset Management, a participant in that round, committed a $550 million financing facility in January 2020 and $150 million more in May 2021. Secfi's broker-dealer was formed in October 2018 and its US adviser registered with the SEC in July 2022; since 2024 the adviser has also raised its own funds for the contracts. Mijnhardt is CEO; Jaime Moreno de los Rios, COO, signs the 2026 Form Ds.
What it is
Non-recourse financing for startup shareholders (as Secfi describes it), brokered secondary sales, fee-only wealth management; an introduction to third-party lenders for loans ('Secfi ... is not a lender').
Who qualifies
Employees and shareholders of late-stage companies; Secfi typically finances companies with $150M+ ARR and a $1B+ valuation and expects an exit within about five years.
Financing cost
Platform fee 5% ('generally up to 5%'); advance rate compounding quarterly and equity share on the full pledged pool, both set per proposal; trust fees.
Broker-dealer
Secfi Securities, LLC, FINRA CRD 302112, formed October 12, 2018, 38 states, no disclosures; agent only.
Advisers
Secfi Advisory Limited (Secfi Wealth), SEC-registered, CRD 306961, RAUM $225.9M; Secfi Limited, Amsterdam, exempt reporting adviser, CRD 289793. No disciplinary disclosures.
Investors
Institutional; Secfi's own funds rely on section 3(c)(7) and are limited to qualified purchasers.
Visual Summary
Worked example at hypothetical rates: financing against selling for the same cash
AltStreet's illustration, not Secfi's terms. Shares Secfi underwrites at $250,000; advance $100,000 (40 cents on the dollar), including a 5% platform fee, so $95,000 in cash. Assumed advance rate 8% a year compounding quarterly; assumed equity share 20% of the exit value of all pledged shares; repayment capped at the shares' value, as Secfi describes. The alternative sells 40% of the shares today at the same value, nets $95,000 after a 5% fee and keeps 60%. Pre-tax, before trust fees; taxes differ between the two.
0.3x ($75,000)
Repaid after 2 years
$75,000 (capped)
Employee keeps, 2 years
$0
Repaid after 4 years
$75,000 (capped)
Employee keeps, 4 years
$0
Seller keeps (60% stake)
$45,000
1x ($250,000)
Repaid after 2 years
$167,166
Employee keeps, 2 years
$82,834
Repaid after 4 years
$187,279
Employee keeps, 4 years
$62,721
Seller keeps (60% stake)
$150,000
2x ($500,000)
Repaid after 2 years
$217,166
Employee keeps, 2 years
$282,834
Repaid after 4 years
$237,279
Employee keeps, 4 years
$262,721
Seller keeps (60% stake)
$300,000
3x ($750,000)
Repaid after 2 years
$267,166
Employee keeps, 2 years
$482,834
Repaid after 4 years
$287,279
Employee keeps, 4 years
$462,721
Seller keeps (60% stake)
$450,000
5x ($1,250,000)
Repaid after 2 years
$367,166
Employee keeps, 2 years
$882,834
Repaid after 4 years
$387,279
Employee keeps, 4 years
$862,721
Seller keeps (60% stake)
$750,000
Investor Operations
The practical questions investors actually care about: when tax documents arrive, how cash distributions work, and whether capital can be exited before the underlying asset is sold.
Tax Documents
K-1 Timing
What to expect
Not stated for the funds.
Cash Flow
Distributions
Frequency
Not applicable to employees; investors are paid as contracts settle.
Timing
After IPO lockups or acquisitions, which Secfi expects within about five years.
Consistency
No settlement history published.
Liquidity
Exit Reality
Holding period
Until the company's liquidity event.
Exit options
- Settlement after an IPO lockup or acquisition.
- Separately, a brokered secondary sale of shares where the company allows transfers.
Secondary market
Secfi brokers sales of employee shares; it is not a marketplace and does not buy shares itself.
Investment Structures
Exercise and liquidity financing (employees)
Non-recourse private securities contract as Secfi describes it: advance repaid at exit with an advance rate and an equity share on the full pledged pool; platform fee up to 5%; trust fees.
Secondary sale (employees)
Secfi Securities brokers a sale to its buyer network; 5% transaction fee, charged only if a sale closes.
Secfi Wealth
Fee-only planning and investment management by Secfi Advisory Limited; planning fee from $1,800 a quarter including the first $1M, then 0.65% and 0.45% a year (minimum $7,200 a year); custodian Altruist or Schwab.
Secfi funds (institutional)
Matterhorn, Weisshorn and Hudson funds and separately managed vehicles that fund contracts; qualified purchasers only. The investor pages give no terms or documents and end in a contact form.
Risk
Risk Structure
This is where the marketplace pitch gives way to the actual operating reality: delayed exits, limited disclosure, fee drag, and path-dependent outcomes.
What the employee gives up
An advance rate that compounds until exit and an equity share computed on the full pledged pool, for an advance of 20 to 50 cents per dollar of underwritten value.
Where the cost is set
In each proposal, by company and person; the platform fee is the only published rate.
Counterparty and conflicts
Investors advised by Secfi's own advisers in some contracts; Secfi discloses the resulting incentive.
Downside
As Secfi describes it: no repayment without an exit, and the obligation limited to the shares, except on breach of contract.
Fund audits
Two of the three funds on the June 2026 Form ADV report audits by RSM; Bergamot reports none; SS&C administers all three.
The equity share on the full pool
The equity share applies to every pledged share, which is two to five times the value advanced.
Why it matters
In a moderate exit, the advance rate and the equity share can leave an employee with less than selling the same cash's worth of shares would have.
Mitigation / verification
Ask the proposal to state which shares the equity share applies to and the repayment at several exit values and dates, and compare it with selling.
A proposal that is hard to compare
Rates are set per proposal; the net cash, accrual base, compounding and caps decide the cost.
Why it matters
Two proposals with the same headline rates can cost very different amounts.
Mitigation / verification
Get competing proposals and compare total repayment at the same exit values and dates.
Broker and investor under one parent
Secfi Securities recommends contracts whose counterparty may be a fund advised by Secfi; the employee is not the advisers' client.
Why it matters
Secfi itself says this creates an incentive to arrange larger and more frequent contracts than may be advisable.
Mitigation / verification
Ask who the counterparty is, whether it is advised by a Secfi affiliate, and why the recommended amount is the right size.
Contract terms not seen
The non-recourse protection is Secfi's description; Secfi's own pages note a breach-of-contract exception.
Why it matters
What counts as a breach, and what then becomes owed, decides how much protection there is.
Mitigation / verification
Have a lawyer or tax adviser read the contract, including breach, settlement and no-exit provisions.
Regulatory & Legal Posture
Security Status
The employee's contract is a private security brokered by a FINRA broker-dealer under private placement exemptions; Secfi's funds are 3(c)(7) private funds offered to qualified purchasers under Rule 506(b) or 506(c). Secfi Advisory Limited is an SEC-registered adviser; Secfi Limited files as an exempt reporting adviser.
Because the broker-dealer recommends the contract, Regulation Best Interest applies to the employee relationship; the advisers owe fiduciary duties to the funds, not to the employee. A Form D is a notice of a sale, not an SEC review.
- BrokerCheck, Secfi Securities, LLC (CRD 302112): formed October 12, 2018; no disclosures; registered in 38 states (not in Alabama, Alaska, Arkansas, Idaho, Kentucky, Louisiana, Maine, Nebraska, North Dakota, Oklahoma, Rhode Island, South Dakota, West Virginia or Wyoming).
- Form ADV, Secfi Advisory Limited (CRD 306961, June 30, 2026): RAUM $225.9M (51 individual clients with $44.5M; 4 pooled vehicles with $181.4M); 3 private funds with $183.7M of gross assets, two reporting audits; no disciplinary disclosures, and none in the Part 2A brochure of March 24, 2026.
- Form D: nine filings by eight vehicles, 2018 to 2026, all filed within the 15-day deadline or before the first sale.
- AltStreet located no SEC, FINRA or state action against Secfi Securities, Secfi Advisory Limited or Secfi Limited as of October 26, 2026; the one suit naming Secfi entities was dismissed as to them in 2024.
Disclosure Quality
Mixed. The Reg BI FAQ and both Form CRS describe the structure and conflicts candidly, and the help center explains repayment and tax treatment. The employee pages describe the equity share less fully than the investor pages, the performance claims have no stated basis, and a comparison page's balance-sheet statement is not reconciled with the institutional structure described elsewhere.
Custody Model
Secfi Securities holds no customer funds or securities. Wealth accounts are held at Altruist or Schwab. Contracts are generally set up with a trust administered by a professional trustee. The funds use SS&C as administrator and Inspira Financial Trust or Wilmington Savings Fund Society as custodian.
Regulatory Backing
FINRA broker-dealer (38 states); SEC-registered adviser; SEC exempt reporting adviser.
Tax Treatment
Reporting
Secfi says settlement of the financing contract produces a capital gain or loss for the employee; investors in the funds receive K-1s.
Not stated for the funds.
Income Character
Per Secfi: capital gain or loss on the contract, separate from the stock
Two things are taxed separately. Exercising options and later selling the shares are taxed as they would be without financing (ordinary income or AMT on exercise depending on the option type, then capital gain on the sale). Secfi's help center says the financing contract itself produces a capital gain or loss when it is settled: repaying less than was advanced is a gain, repaying more is a loss, which Secfi says can offset other capital gains and up to $3,000 of ordinary income a year.
Secfi also says a contract that ends without an exit 'could have some tax consequences'. The adviser's brochure is more cautious: the contracts 'may be treated as variable prepaid forward contracts for U.S. federal income tax purposes, although there can be no assurance that the Internal Revenue Service will agree', and the treatment could change if they were treated as debt or as a constructive sale. These are Secfi's statements; consult a tax adviser.
Limitation
AltStreet is not a tax adviser and did not see a contract's tax provisions.
Special Considerations
- Financing an early exercise can start the long-term holding period; for incentive stock options Secfi's pages discuss AMT and QSBS planning.
- Selling instead of financing triggers tax on the sale now; financing defers the sale but adds the contract's own gain or loss.
Account Suitability
Taxable
Employee contracts relate to shares held personally.
Roth IRA
Not applicable to the financing; Secfi Wealth manages retirement accounts at Altruist.
Traditional IRA
As above.
HSA
Not addressed.
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AltStreet Data Layer
What the data actually shows
The filings describe an institutionally funded financing business whose adviser has started raising its own funds; the site describes the product's mechanics on its investor pages more fully than on its employee pages.
New Secfi-managed funds in 2026
Three Weisshorn and Hudson vehicles reported aggregate sales of $250.9M to five investors in July to September 2026; two share a first-sale date, so the figures may overlap. Matterhorn reported $37.9M by July 2025.
What this means
Reported activity in Secfi-managed funds, not unique capital raised or a share of all current financing.
Gross assets and sales on different bases
Matterhorn: $111.2M gross assets and 63 beneficial owners on the June 2026 Form ADV, against $37.9M sold and 18 investors on its 2025 Form D amendment.
What this means
Different dates and bases; the gap is not a return.
Every filing on time
Nine Form Ds by eight vehicles, filed before the first sale or within 15 days of it.
What this means
A clean notice record, though no 2026 annual amendment was located for Matterhorn.
Data as of 2026-10-26 . AltStreet review evidence layer . Public-source analysis
Full datasetDecision Fit
Investor Fit
Who this works for, who it does not, and what level of patience and complexity tolerance the platform really demands.
Employees of large late-stage companies who expect a strong exit and want to keep their position
Financing keeps the upside that a sale gives up; at the illustrative rates it leaves more than selling above roughly 2.3x to 2.7x the current value. Compare proposals first.
Employees facing an exercise deadline or a large AMT bill
Non-recourse cash as Secfi describes it, but the equity share falls on the whole pledged pool; weigh it against a partial exercise or a sale.
Employees who want certainty more than upside
Secfi's brokered secondary sale costs 5% and fixes the outcome today; financing pays off only in a strong exit.
Employees at early-stage or smaller companies, and retail investors
Secfi typically finances companies with $150M+ ARR and a $1B+ valuation, and its funds are limited to qualified purchasers.
Tradeoffs
Key Tradeoffs
The attraction of pre-IPO access is real, but every benefit comes bundled with a corresponding liquidity, transparency, or pricing cost.
Upside
An equity share on the whole pledged pool and an advance rate that grows with time.
Downside
Breach exceptions and contract terms that public sources do not show.
Cost
No public rates, so comparison depends on getting several proposals.
Conduct
Broker and investor-side adviser under one parent.
Avoid
Who This Is Not For
This section should be read as a filter, not an afterthought. If you need income, simplicity, or near-term access to capital, the structure is working against you.
Retail investors
Secfi's investment products are limited to qualified purchasers and institutions.
Employees of early-stage companies
Secfi typically finances companies with $150M+ ARR and a $1B+ valuation.
Employees who expect a modest exit
At the illustrative rates, selling the same cash's worth of shares leaves more below roughly 2.3x to 2.7x the current value.
Editorial View
AltStreet Perspective
The compressed version of the review: what matters, what marketing tends to obscure, and how we would frame the platform for a serious allocator.
Verdict
Secfi is a financing desk with a regulated broker, an adviser and, since 2024, its own funds, built around the cash problem employees face when options vest. The product does what it says for an employee who expects a strong exit; the cost is decided in the proposal, mostly by the equity share on the full pledged pool and by time. Its best documents (the Reg BI FAQ, the Form CRS, the help center) are franker than its marketing. For an employee, the questions are what the proposal repays at several exit values and how that compares with selling.
Positioning
Against Equitybee, which funds the same kind of contract through investor-backed series and whose live offers showed 2% to 4% interest and a 17% to 42% equity share when AltStreet captured them, Secfi uses institutional money and its own funds and prices each proposal privately. Against selling on EquityZen, Forge or Clarity, financing keeps the upside a sale gives up, at the cost of the advance rate and equity share: holding the cash raised equal, it leaves more than selling only above a break-even exit value, about 2.3x to 2.7x the current value at AltStreet's illustrative rates. Secfi also brokers sales itself for 5%.
The Bottom Line
A regulated stock option financing desk whose cost is set in each proposal, mostly by an equity share on the full pledged pool: worth it in a strong exit, not in a modest one.
Action
Next Steps
If you still want to engage after reading the review, these are the practical next moves that reduce avoidable mistakes.
Ask the proposal to state net cash received, the amount on which the advance rate accrues, compounding frequency and when accrual stops.
Ask which shares the equity share applies to, and get total repayment at several exit values and dates.
Compare the proposal with selling the same cash's worth of shares, and with a second provider's proposal on the same shares.
Ask who the counterparty is and whether it is advised by a Secfi affiliate.
Ask for the basis of the 94% figure: denominator, date, fee treatment and unresolved contracts.
Have a lawyer or tax adviser read the contract, including breach, settlement and no-exit provisions.
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Deal Intelligence →Appendix
Sources, Disclosures, and Supporting Context
The lower section is structured like a report appendix: relationship context first, adjacent reading second, and evidence last.
Report Appendix
Disclosure
Relationship and compensation context
+
Report Appendix
Disclosure
Relationship and compensation context
Report Appendix
Related Resources
Adjacent platform comparisons, frameworks, and category links
+
Report Appendix
Related Resources
Adjacent platform comparisons, frameworks, and category links
Further Reading
Related Resources
Adjacent frameworks and reviews that help place the platform in a broader allocation or due-diligence context.
Fund Landscape
Frameworks
Similar Platform Reviews
- Equitybee Review
Stock option funding through investor-backed series LLCs, with interest and an equity share at exit.
- EquityZen Review
Pre-IPO secondary marketplace for selling or buying private company shares through funds.
- Forge Global Review
Listed pre-IPO marketplace and data provider.
- Clarity (formerly Hiive) Review
Pre-IPO secondary marketplace with a public order book.
Report Appendix
Evidence & Methodology
19 cited passages on file; sources, scope, and how the review was assembled
+
Report Appendix
Evidence & Methodology
19 cited passages on file; sources, scope, and how the review was assembled
Evidence on file
19 supporting passages on file for Secfi and its offerings from 13 source documents, 4 discrepancies flagged. Each passage records the metric it supports, the value read from the document, the page, and the verbatim text where the document has it. Terminal subscribers read the passages; open them in the terminal.
- Cited passages
- 19
- Source documents
- 13
- Analyst verified
- 0
- Discrepancies flagged
- 4
ASReview Evidence
Methodology
156 secfi.com pages from the sitemap and nine learn articles; Form D of eight vehicles (nine filings); Form ADV of Secfi Advisory Limited (Schedule D, three funds, and the Part 2A brochure of March 24, 2026) and Secfi Limited; BrokerCheck; both Form CRS, the Reg BI FAQ and the Part 2B supplement; CourtListener.
Scope
Secfi's employee financing, secondary and wealth services, its funds and its three regulated entities. Financing proposals, contracts and fund documents were not obtained.
Key Findings
- *Investor page: 'An “equity fee” is due over the full collateral pool'.
- *Reg BI FAQ: 'there is an incentive to broker securities contracts ... with greater frequency and for larger amounts than otherwise may be advisable.'
- *Part 2A brochure, Item 14: Secfi Wealth clients 'will, and are expected to, serve as Shareholder counterparties to Forward Contracts with the Forward Contract Funds'.
- *Important information: 'Shareholders are not customers or clients of the Advisers as related to a Secfi Financing transaction.'
- *Reg BI FAQ: on a $100,000 contract 'Secfi Securities will typically charge a $5,000 brokerage commission.'
Primary Source Pages
Comparable Platforms
- Equitybee
Same contract type; investor-funded series; rates visible on live offers.
- EquityZen
Sale rather than financing.
- Clarity (formerly Hiive)
Marketplace sale with a public order book.
FAQ
Frequently Asked Questions
High-intent search questions answered directly, without making users hunt through the full review.
How does Secfi financing work?
Secfi's broker-dealer arranges a private securities contract between you and an investor. You receive cash to exercise options (including taxes) or against shares you hold; at an IPO or acquisition you repay the advance, an advance rate that compounds quarterly, and an equity share of the value of your pledged shares at exit, usually by selling shares. As Secfi describes it, you owe nothing if there is no exit, and your obligation is limited to the shares except if you breach the contract.
How much does Secfi financing cost?
A platform fee of 5% ('generally up to 5%') plus trust fees, and two charges set in your proposal: the advance rate and the equity share. Secfi's investor pages say the equity share is charged on the full pool of pledged shares, which can be two to five times the cash advanced, so ask the proposal for total repayment at several exit values and dates.
Is it better to finance or to sell?
It depends on the exit. Holding the cash raised equal, financing keeps your upside but costs the advance rate and equity share; selling fixes the outcome today. In AltStreet's illustration at hypothetical rates (8% a year, 20% equity share), financing left more than selling only above about 2.3 to 2.7 times the shares' current value. Your proposal's rates, any secondary discount and taxes will move that point.
Is Secfi legit?
Yes, it is a regulated firm with a clean record. Its broker-dealer, Secfi Securities (FINRA CRD 302112), and its advisers, Secfi Advisory Limited (CRD 306961) and Secfi Limited (CRD 289793), report no disciplinary disclosures, and all nine Form Ds of its funds were filed on time. The one lawsuit that named Secfi entities, a trade-secret claim against Equitybee and others, was dismissed as to Secfi in 2024.
Who provides the money?
Institutional investors, including funds managed by Secfi's adviser. Serengeti Asset Management committed $700 million in 2020 and 2021, and since 2024 Secfi has raised its own qualified-purchaser funds. One Secfi comparison page says it funds clients from its own balance sheet, which may refer to its managed funds; ask who your counterparty is.
Secfi or Equitybee?
Both offer non-recourse financing repaid at exit with interest and an equity share. Equitybee funds each contract through investor-backed series LLCs, and its live offers showed 2% to 4% interest and a 17% to 42% equity share when AltStreet captured them in June 2026; Secfi prices each proposal privately. Compare both proposals on the same shares, including which shares the equity share applies to.