Boarding PassAption raises $2.4M to help founders and early employees diversify stock & options through equity pooling
Boarding Pass
Aption raises $2.4M to help founders and early employees diversify stock & options through equity pooling
The company’s target audience includes individuals who seek to manage their concentrated, illiquid holdings better.
“Founders and employees often find themselves with highly concentrated, speculative equity positions, not as a result of investment decisions but career choices,” said Alon Zieve, co-founder and CEO of Aption. “Risk is an inseparable part of the startup ecosystem, but Aption believes that the current paradigm forces both founders and employees to bear levels of personal exposure that are both excessive and counter-productive.” By pooling part of their assets with other startups, Aption allows stakeholders to diversify their holdings, reducing risk in an unpredictable market.
Its client base includes founders, executives, and early employees of dozens of top Israeli startups, such as HiBob, Optibus, AppsFlyer, Yotpo, Rapyd, Axonius, DriveNets, Orca Security, Ermetic, and more. Usage has spread almost completely via word-of-mouth, as the company’s AI-powered platform continues to attract attention from stakeholders looking to better secure their financial futures amidst prolonged market uncertainty.
With plans to expand its reach in the U.S. and enhance its technology further, the company aims to revolutionize venture wealth management for founders and employees navigating uncertain times.
You can learn more about the company below.
Company Name: Aption
Sector: Fintech
Product/Service description:
Aption helps startup founders and early employees to manage and diversify their stock and options through equity pooling. The platform, which uses advanced AI technology, helps mitigate the risks associated with holding large, illiquid equity positions for extended periods. In light of the current venture capital environment, where exit timelines are lengthening and markets remain volatile, Aption’s model has seen rapid growth, tripling its assets under management in recent months.
Founder Bios:
Alon Zieve has served in CFO and CFO roles over the past 15 years in companies including Bringg, Seeking Alpha, Natural Intelligence, and BATM. He has also advised CFOs on strategic finance. Over his career he has raised approximately $200 million over six rounds, led 10 acquisitions, and helped sell one bootstrapped business for $50 million.
Aaron Rosenson spent over six years as a General Partner at Aleph VC, where he led investments in leading Israeli startups such as Placer.ai and Coralogix.
Year of Founding: 2023
Last Investment Round: $2.4 million
Last Investment Stage: Pre-seed
Date of Last Investment: August 202
Total investment to date: $2.4 million
Investors: Motivate Ventures, Recursive Ventures, Carthona Capital
Current number of employees: 7
Open positions: 1
How was the idea born?
Over the last 15 years, Alon Zieve has issued stock options to thousands of employees and assisted numerous founders. Despite working at prominent companies, very few individuals made significant financial gains during this period. In contrast, venture capitalists (VCs) generated substantial returns on the same assets. This disparity intrigued Zieve, and he discovered two primary reasons for it: VCs hold Preferred Stock and, more importantly, they have diversified portfolios. Interestingly, over 90% of their returns come from diversification. This led Zieve to wonder if it was possible to trade stock or options in a singular position for a diversified portfolio, which sparked the concept behind Aption.
What is the need for the product?
Founders or early-stage employees at successful startups often accumulate millions of dollars in highly risky and illiquid stock. Even in the case of great companies, having such a concentrated position is a poor investment strategy. Until now, there were limited options for managing this risk. Aption provides a solution that allows individuals to diversify their wealth and mitigate this risk effectively.
How is it changing the market?
Aption fundamentally increases the value of startup equity. When someone holds stock in a company with an 80–90% chance of failure, they often disregard its value. However, by diversifying that stock into a portfolio of assets, the risk of the entire basket going to zero drops to single-digit percentages. Once people understand the financial benefits of this approach, they see the immense value and want to participate.
How big is the market for the product and who are its main customers?
The market for venture equity is enormous, with around $9 trillion in equity held by founders, executives, and employees. Our target audience includes these individuals who seek to manage their concentrated, illiquid holdings better.
Does the product exist already? If not - at what stage is it and when is it expected to hit the market?
Aption has been operational in Israel for the past year, and we are now launching in the United States.
Who are the main competitors in this sector and how big are they?
Currently, no other company offers diversification for any stock the way we do. Competitors like Plural focus on mega private companies, and Cache provides diversification solutions for public stocks.
What is the added value that the founders bring to the company and the product?
Our team brings extensive knowledge of the financial, tax, and legal intricacies necessary to develop this product. We also possess a deep understanding of venture capital and startups. Combined with our tech expertise, we've built a solution that works where others have failed. People have attempted to create something similar for over 20 years, but no one has come as far as we have.
What will the money coming in from the round be used for?
Most of the funds will be used to develop our U.S. product and technology further, as well as expand our sales efforts.
In the "Startup Boarding Pass" section, CTech will cover the (relatively) small investments made in companies during the early stages of their existence - and the entrepreneurs and startups who have not yet had the opportunity to reveal their stories to the world. Please use the linked form and fill it out according to the guidelines. This form is intended for startups raising between $500,000 and $3 million from venture capital funds, angels, or official grants from Israeli and foreign institutions. If relevant, someone at CTech will be in touch for follow-up questions.
