Drip of the Week: Introducing Spark — Lower Cost of Capital

Welcome to the Drip of the Week — your quick hit on companies we like, what’s changing across the Unicorn economy, and how those changes impact employees and founders shaping the future. 

Spotlight: Spark — Drip 2. Lower Cost of Capital

We’re excited to continue our 4-part Spark series. Spark is our solution built specifically for employees and companies that have publicly filed an S-1.

Drip 1: Higher Advance Rate
Drip 2: Lower Cost of Capital
Drip 3: Tax Optimization
Drip 4: Liquidity & Diversification

Lower Cost of Capital

Lowering our cost of capital became a core focus while building Spark. The reason is simple: if we can price more efficiently, we can help more people.

With Spark, we can advance up to 50% of the value* of your shares and offer materially lower pricing than we can for pre–S-1 companies. Public filing reduces information asymmetry and structural risk, and that efficiency flows through to you.

Lower cost directly improves outcomes. More liquidity today. Less drag on long-term upside. Greater flexibility around how and when you make decisions.

Why This Matters for Shareholders

Lower pricing expands what’s possible:

• Begin tax planning earlier (more in Drip 3)
  • Hedge exposure to public market volatility
  • Diversify without fully exiting
  • Access liquidity while retaining upside

Why This Matters for Option Holders

Spark allows you to exercise ISOs, NSOs, and single-trigger RSUs/PSUs based on today’s 409A rather than waiting to net exercise at the IPO price.

That means:

• Preserving more shares
  • Avoiding forced net exercises that cut your ownership
  • Shifting future appreciation from ordinary income to capital gains

If you want to see how this impacts your specific grant, we’re happy to build a personalized model.

Company of the Week: Kraken

Kraken quietly put itself on the IPO track with its confidential S-1 filing in November 2025. In crypto, timing is never dull. Markets are volatile, sentiment swings fast, and headlines change daily. But through multiple cycles, Kraken has built a durable franchise: strong brand recognition, institutional credibility, global reach, and real operating scale.

This is not a new exchange riding a hype wave. It is one of the longest-standing platforms in the space, with meaningful market share, diversified revenue streams, and a history of navigating regulatory complexity. That matters as public investors look for businesses that can survive the cycles, not just benefit from them.

For employees and shareholders, a confidential filing is a signal. Windows start to open and planning decisions start to matter more as exercise timing, tax positioning, and diversification strategy can materially change outcomes well before a public listing actually happens.

If you know or work with Kraken employees, now is a great time to connect us. Even if no action is taken today, starting the conversation early can create meaningful flexibility when the IPO process accelerates.