We’ve worked our careers in high-growth startups next to talented individuals who are clueless about the most important financial opportunities in their lives. To solve this, you’re forced to either learn obscure details of the tax code or speak with salesy private bankers.
We founded Compound to empower people who work in tech to make better financial decisions so they have the freedom to focus on what matters most.
Compound is an all-in-one financial platform, much like a family office, that helps clients track their assets (e.g. startup equity, cryptocurrencies, fund investments, public securities), optimize their taxes (e.g. AMT), and invest their liquidity into tax-efficient public and private portfolios. Clients work with Compound advisors—experts who understand the emotional and technical nuances of a career in the startup world—to efficiently manage their finances.
Today, we’re announcing our recent $25M Series B, led by Greenoaks and Lachy Groom. Over the past several years, we’re grateful to have raised $37M with the support of investors including Egon Durban (Silver Lake), Sam Bankman-Fried (FTX), Y Combinator, XYZ, SciFi, Day One Ventures, and founders and executives from Coinbase, Goldman Sachs, Meta, Stripe, Brex, Plaid, Adobe, Notion, AngelList, Eventbrite, Affirm, Polychain, Paradigm, Blend, Quora, Vise, Carta, and Point.
Introducing Compound
01.27.2022
The next generation of wealth is incompatible with the status quo. We believe that the majority of our clients' value will be created in the future and are committed to supporting their growth.
If acronyms like ISOs, AMT, GRATs, etc. make your head spin and you’re not particularly excited to talk to a traditional “advisor/salesperson” who will treat you exactly like they would treat a dentist (and know as much as your dentist does about NSOs), we’re looking forward to helping.
If solving these problems excites you, we’re hiring kind and ambitious people.
Registered Investment Advisor
A Registered Investment Advisor (RIA) is an individual financial advisor or firm that provides its clients with financial and investment advice.
NSO
A non-qualified stock option (NSO) is a type of option that gives an employee the right to buy shares of company stock at what’s called the exercise price unlocked according to their vesting schedule. The gain at the time of exercise (difference between exercise price and latest fair market value) is treated as ordinary income. The gain at the time of the sale may qualify for long-term capital gains.
Robo-advisors
Also known as automated investing services or online advisors — these use algorithms and software to build and manage your investment portfolio.
You may owe taxes when you exercise your options. For NSOs, the bargain element (spread between the company’s 409A and your strike price) is taxed at the same tax rate as your ordinary paycheck. Whether the company is public or private, you have to pay the taxes when you exercise the shares or have a same-day liquidity event. Your cost basis for the shares is then increased to the company's current 409A. Exercising an ISO does not create regular income, but may trigger something called the Alternative Minimum Tax (AMT).