Klaviyo is a marketing automation platform based in the United States. On September 20, 2023, the company went public with an initial offering price of $30 per share. By the end of its first trading day, Klaviyo’s share price closed at $32.76, resulting in a valuation of approximately $9.2 billion and marking a significant IPO in the marketing tech sector.
From December 2022 to May 2023, Equitybee facilitated the funding of stock option packages for three Klaviyo employees. Shortly after the final funding, Klaviyo went public, enabling investors to realize impressive returns.
The table below showcases the returns yielded by all Reddit offers via Equitybee after Reddit’s IPO lockup period expired.
| Offer # | Net MOIC* | Net IRR** | Net ROI | Funded Date | Offer Price | Interest | Share Incentive % | Distribution Date | Settlement Price |
|---|---|---|---|---|---|---|---|---|---|
| Offer #1 | 1.42x | 33% | 42% | Dec 28, 2022 | $10.81 | 2% | 20% | 3/20/2024 | $26.50 |
| Offer #2 | 1.87x | 78% | 87% | Jan 5 & Mar 24, 2023 | $6.76 | 2% | 25% | 3/20/2024 | $26.50 |
| Offer #3 | 2.18x | 118% | 118% | May 3, 2023 | $6.91 | 2% | 35% | 3/20/2024 | $26.50 |
*Multiple on Invested Capital
**Internal Rate of Return, net of fees
Past performance is not indicative of future results. 76.19% IRR represents the average IRR experienced by investors who utilized Equitybee to fund the 3 Klaviyo offers. Offers were funded between 12/28/2022 and 03/24/2023. Net IRR is shown net of all applicable fees. IRR figures are calculated for each offer on the Equitybee platform from the date the investor's funds were transferred to the employee (funded date) through the distribution date of proceeds. If the distribution date was less than one year after the funded date, the IRR represents an unannualized return. For distributions one year or more after the funded date, IRR is annualized
Klaviyo public share prices sourced through Yahoo! Finance. Equitybee is not affiliated or associated with, or endorsed by, any of the companies mentioned herein. Equitybee executes private financing contracts (PFCs), private placements which are speculative, illiquid, contain substantial risk and may result in the complete loss of capital to the investor. These risks may be greater during extreme market conditions. PFCs do not grant or transfer ownership of startup company stock. When a liquidity event occurs at a price per share less than the investment price per share, Investors will first receive all available funds to recoup the original investment amount. The employee will not receive any proceeds in this event. A private offering of interests will only be made pursuant to a confidential private placement memorandum, an operating agreement, and other subscription documents (“Other Documents”), which will only be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. For accredited investors only. Securities offered through EquityBee Securities, LLC, member FINRA.
Startup employees often receive stock options as part of their compensation. To convert these options into shares, employees must exercise their right to purchase these stock options, which involves significant upfront capital. Many employees cannot afford to do this, missing out on participating in the potential future success of the companies. Equitybee’s investors can provide the needed capital, allowing employees to exercise their options. In return, investors receive their initial investment, annual interest, and a percentage of the equity's value upon a successful liquidity event, such as an IPO or acquisition. This creates a mutually beneficial opportunity in a largely untapped market worth over $150 billion*.
Despite the aforementioned distribution drought from traditional US venture capital funds (mainly stemming from the lack of IPOs), Equitybee investments have continued to generate liquidity from a myriad of liquidity event types. This well-balanced mix means that Equitybee investors don’t need to rely on a hot IPO market to receive distributions. Additionally, tender offers (Equitybee’s historically highest performing liquidity event type) are a mostly unique exit route tied to the funding of employee stock options, which typically traditional VCs don’t have access to. Specifically, tender offers & secondaries liquidity events through Equitybee investments have delivered a 2.81x net multiple on invested capital in just under 2 years on average.
*TAM is calculated based on the estimated number of startup employees (1.1M) in the companies that qualify to receive funding through the Equitybee platform.
This number is derived from Pitchbook, multiplied by the average employee offer size sourced from Equitybee s proprietary data.
** Weighted average for MoIC, sourced from Equitybee s proprietary data
*** Indicates average time from investment date to distribution date, sourced from Equitybee s proprietary data
Past performance is not indicative of future results. Private placements are speculative, illiquid, contain substantial risk and may result in the complete loss of
capital to the investor. Consult your tax accountant as there may be tax considerations on profit amounts. Results may vary with each use and over time. Investor
proceeds may be settled in cash or shares.
Equitybee executes private financing contracts (PFCs), private placements which fund employee stock options. PFCs do not grant or transfer ownership of startup company stock, are speculative, illiquid, and are subject to risk including the complete loss of capital to the investor. Risks may be greater during extreme market conditions. Please read the private placement memorandum before investing. Securities offered through EquityBee Securities, LLC, member FINRA.
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Past performance is not indicative of future results. 37% net IRR represents all fully realized investments across the Equitybee platform, including US and Israel markets. Investors should be aware that these returns were primarily achieved during favorable market conditions. Results based on offers from June 2018 through July 2024. Net IRR is shown net of all applicable fees for the respective market. This performance data does not represent any investor’s portfolio or any model portfolio. IRR figures are calculated for each transaction into an offer on the Equitybee platform from the date the investor's funds were received through the distribution date of proceeds, if any. If the distribution date was less than one year after the invested date, the IRR represents an unannualized return. For distributions one year or more after invested date, IRR is annualized. Data quoted excludes partial returns of invested capital, e.g., tender offers for a portion of covered securities, and investments which have not experienced a liquidity event. As of July 31, 2024 approximately $108M million has been invested on the Equitybee platform; 17.9% of invested capital has experienced a fully realized return, 82.1% of invested capital is unrealized or partially realized.