For decades, startup employees have been sold on the promise of equity. Join early, help build the company and one day that stake could be worth a fortune.
The problem, however, is that increasingly, that 鈥渙ne day鈥� is taking much longer to arrive.
As private companies stay private for longer, a growing number of founders, employees and early investors are finding themselves in an unusual position: asset-rich on paper but cash-poor in reality. Now, New York-based startup Techdollar is betting that this problem has become big enough to build an entire business around.
The company has announced a $3 million pre-seed funding round and the launch of what it describes as the first lending platform designed specifically for holders of pre-IPO equity.
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The Growing Problem Of Locked-Up Startup Wealth
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Whilst venture-backed companies once raced towards public markets, many of today鈥檚 most valuable technology firms remain private for a decade or more. According to Techdollar, the world鈥檚 leading private AI companies alone now have a combined valuation exceeding $2.7 trillion.
At the same time, secondary markets for private shares have expanded rapidly. According to figures from Evercore cited by the company, secondary transactions reached a record $226 billion in 2025.
Despite this, many startup employees still struggle to access the value tied up in their shares.
Traditionally, they have had limited options. They can wait for an acquisition or IPO, sell shares through a secondary transaction if one is available, or attempt to secure financing against their holdings 鈥� a process that has historically been reserved for executives or investors with very large positions.
Techdollar wants to offer a fourth option.
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Borrowing Against Equity Rather Than Selling It
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The platform allows employees, founders and investors to borrow against their private company equity without selling shares.
Rather than viewing startup equity as a speculative asset, Techdollar argues that mature private-company shares should increasingly be treated like other valuable assets that can be used as collateral.
The company compares the model to mortgage lending.
Instead of selling a home to access capital, homeowners borrow against its value. Techdollar believes startup shareholders should be able to do the same with their equity.
According to the company, borrowers retain ownership of their shares, avoid triggering a taxable sale and maintain any future upside if the company continues to grow.
鈥淭he financial system was never built for the early employees who help build and scale these companies,鈥� said Terence McMenamin, co-founder and CEO of Techdollar.
鈥淓mployee number three should have the same access to their own wealth as the CEO.鈥�
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Investor Interest Signals A Growing Market
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The company鈥檚 $3 million pre-seed round was led by No Limit Holdings, with participation from ReforgeVC and a number of angel investors, including Curve Finance founder Michael Egorov.
Perhaps more telling than the funding itself is the level of demand Techdollar says it has already seen.
According to the company, it has built a pipeline of more than $100 million in qualified loan demand ahead of launch, drawn from employees and investors at companies across sectors including AI, aerospace, defence, robotics and payments.
That demand reflects a broader shift taking place across the startup ecosystem.
As private market valuations rise and IPO timelines stretch further into the future, founders and employees are increasingly looking for ways to access liquidity without giving up ownership.
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Is a New Category Emerging?
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Techdollar鈥檚 launch also highlights a wider trend: the financial infrastructure supporting private markets is becoming more sophisticated.
Over the last decade, platforms such as Carta and Pulley have helped companies manage ownership and cap tables. Secondary marketplaces have made it easier to buy and sell private shares. Now companies like Techdollar are attempting to build financial products on top of those assets.
The company says it is already integrated as a perk within Pulley and is currently discussing integration opportunities with Carta.
Whether equity-backed lending becomes a mainstream employee benefit remains to be seen. Questions around valuation volatility, risk management and regulation will inevitably follow.
But as startups remain private for longer and billions of pounds of wealth remain locked inside private company cap tables, the demand for new liquidity solutions is unlikely to disappear.
For a generation of startup employees sitting on valuable but inaccessible equity, that may be an opportunity worth watching.
