Equity offering needs to be adapted to your market, the profiles and company culture.
The equity package is depending on several variables, but it is mostly linked to the attractivity of your company, how strategic a position is, how hard a candidate is to attract and to retain.
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As your company grows, you tend to add people in “layers”.
The initial grant can also be expressed as a percentage of the base salary (taking the price per share of the last round).
According to the study Rewarding Talents by Index Ventures, the percentage is on average between 15% and 33% of the salary, but can be as low as 5% (junior people in sales or customer success) and up to 75% (director in product, engineering or business development).
Free food, Beer taps and ping pong games in the break room do not help employees feel connected with the company's vision, mission or direction.
Employees prefer equity/stock compensation, the non-cash payout they get by being allocated restricted stock options.
Employees then become partial owners of the company, vested into how it performs, increasing their motivation to be more productive and effective.
An Initial Public Offering (IPO) is the process where a private company becomes listed on a public stock exchange and offers new shares.
Prior to an IPO, the company is private and shares are usually held by the founder, early employees, VC firms, and angel investors.
An IPO is a great way for a business to raise money by allowing public investors to invest in the business for the first time.
An investment is a gamble: instead of the security of guaranteed returns, you're taking a risk with your money.
You can invest in Shares, Bonds, Funds, Government bonds (gilts), UK property market or even Farmland, Vintage cars, Wine, Fledgling technology, firms or art.
For most, investing means putting money in the stock market.
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