EB Exchange Funds creates partnerships that enable entrepreneurs to pool their pre-IPO stock. The Funds enable entrepreneurs to diversify highly concentrated, illiquid equity positions and to share in the upside of the liquidity events of multiple companies. There is no cash investment in our exchange funds, only stock.
Founders and entrepreneurs that own a significant amount of stock in private companies backed by top-tier venture capital firms contribute a small portion of their personal stock in exchange for a limited partnership interest in a portfolio diversified by industry and stage of development.
Once the portfolio is created, entrepreneurs who contribute their stock become limited partners in what is essentially a venture capital fund, sharing in the proceeds from all of the companies’ IPOs, mergers and acquisitions.