Today, Troy Capital Partners, a multi-stage venture capital fund, and Oaktree Capital, a leading global alternative investment management firm with expertise in credit strategies, announced a spinoff called Quid, a provider of loans backed only by pre-IPO shares, with no personal guarantee. Quid was established by former startup founders turned venture capitalists who believe that equity compensation is broken.
Quid is a new kind of lending business that partners with company employees and shareholders to give them money for their shares today, while they retain the upside tomorrow, with no fees taken out of pocket. The money is repaid when the company has an IPO or sale.
Quid has worked with companies including Uber, Lyft and CrowdStrike, who have all since gone public, and is actively providing loans to many of the most exciting pre-IPO tech companies. The company has already deployed 60% of their fund, announced back in 2017. The new spinoff was officially launched at the Goldman Sachs Private Innovative Company Conference in October of 2019.
“As the most innovative technology companies stay private longer, employees should have access to the value of their true net worth,” said Josh Berman, co-founder, Quid. “That’s what Quid is all about. Whether you’re sitting on a pile of pre-IPO shares or have the option to buy them, Quid can loan you funds based on your stock’s value, with no personal liability on the loan.”
Quid offers a new type of loan – explained here:
- Quid allows employees and shareholders to keep the upside in their shares
- Quid’s solution likely results in advantageous tax treatment
- With Quid never come out of pocket for option exercise
- Quid’s solutions generally has no personal liability
- Quid transactions take five to ten days (versus a sale, which takes three to six months).
To learn more about Quid, visit https://www.getquid.com/.
A dedicated venture fund at Troy Capital Partners, Quid offers a new kind of loan on pre-IPO equity. There is no personal liability on the loan and Quid is intended to be fully compliant with company policy, allowing employees and shareholders to enjoy cash today without any out of pocket expenses. The loan is repaid when the company goes public, and the employees keep the upside. Quid is managed by Troy Capital Partners and backed by Oaktree Capital. Learn more at getquid.com.