Prism Labs is a blockchain-based community development platform that provides liquidity solutions for shareholders of private tech companies by offering loans secured against their equity. This enables founders, employees, and investors to access funds without selling shares or incurring personal recourse, addressing the challenge of illiquid assets in a market where $2 trillion is tied up in private company stock.
Funding
$120K raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
HCFounders
Product
Problem
Shareholders in private tech companies often face limited liquidity, as their equity is inaccessible until the company undergoes an IPO or acquisition. This can create financial constraints for founders, employees, and investors who may need funds for various personal or business needs.
Solution
Prism Labs operates a marketplace connecting shareholders of private tech companies with lenders, providing liquidity through loans secured by their equity. This allows shareholders to access capital without selling their shares, deferring capital gains taxes and retaining the potential upside. Prism Labs streamlines the loan process, offering a platform to quickly find loan offers and receive funds in as little as three days. The loans are structured with no personal recourse, mitigating risk for the borrower.
Target Audience
The primary target audience includes founders, employees, and investors holding equity in private tech companies who seek liquidity without selling their shares.
Features
- Marketplace platform connecting borrowers and lenders for equity-backed loans
- Loan amounts up to $100 million
- Maximum loan-to-value (LTV) ratio of 30%
- Interest rates starting at SOFR+7
- Streamlined application process for quick access to loan offers
- Loans secured by startup equity with no personal guarantee
- Custody of shares maintained by the borrower