LOS ANGELES, April 19, 2023 — Ari Stiegler, CEO and co-founder of Prism, a first-of-its-kind lending platform for startup companies and employees, today commented on the promising market environment for disruptive technology startups and investors. Stiegler believes now is the ideal time to invest in early-stage, fast-growing companies as valuations have returned to more attractive levels after significant market consolidation since 2021.
“The recent correction in public and private markets provides a rare opportunity for investors to take advantage of historically attractive valuations in the technology sector,” Stiegler said. “Now is the time to deploy capital toward companies that are forging industries of the future. With inflation cooling and interest rates poised to plateau, we see a runway for the disruptors and innovators to regain investors’ favor and lead us into the next bull market.”
In addition to founding and leading Prism, Stiegler is managing partner of Flux Capital and has directed more than $200 million in transactions across venture capital, real estate and direct investments. His remarks follow the recent launch of Prism’s lending platform for employees of pre-IPO technology startups with valuations of $1 billion or higher. The platform enables employees to borrow against their company equity that was previously inaccessible without an acquisition or public listing.
Prism recently closed Seed and Series A fundraises totaling $26 million and signed agreements to begin originating loans in the coming months. The company maintains a strict underwriting process and offers competitive rates to meet the needs of the current financial environment.
“By launching Prism’s origination services, we are providing a superior liquidity solution as compared to a secondary sale or tender offer,” Stiegler said. “We are thrilled to provide much-needed liquidity to startup workers who have long struggled to access the equity they’ve earned in their company. Prism represents a win-win-win for startup leadership, employees and investors alike – providing shareholders with access to liquidity while allowing companies to attract and retain the top talent needed to increase shareholder value.”
About Prism
Prism partners with VC-backed private tech companies to offer liquidity to founders, employees, and investors. With Prism, employees can access cash and retain their equity’s future upside. Enabling employees to unlock illiquid stock-based compensation can significantly improve job satisfaction, employee retention, and recruiting efforts at a company. Prism’s loans are secured solely by the equity that each borrower posts as collateral, and have no personal recourse – meaning borrowers’ other assets are not at risk should the underlying equity decline in value. Prism’s loan marketplace tech platform, which facilitates originations between private shareholders and institutional lenders, is available to late-stage, venture-backed companies that partner with Prism.
SOURCE Prism
