The ability to offer stock options is utterly essential to startups. They convince talented people to join when the startup is unlikely to be capable of matching the high salaries that larger, established tech firms can offer.
However, it’s a complex business developing a competitive stock option plan. Luckily, London-based VC Index Ventures today launches both a handy web app to calculate all this, plus new research into how startups are compensating their key hires across Europe and the US.
OptionPlan Seed, is a web-app for seed-stage founders designing ESOPs (Employee Stock Ownership Plans). The web app is based on Index’s analysis of seed-stage option grants, drawing on data from over 1,000 startups.
The web app covers a variety of roles; 6 different levels of allocation benchmarks; calculates potential financial upside for each team member (including tax); and adjusts according to policy frameworks in the US, Canada, Israel, Australia, and 20 European countries.
It also builds on the OptionPlan for Series A companies that Index launched a few years ago.
As part of its research for the new tool, Index said it found that almost all seed-stage employees receive stock options. However, while this reaches 97% of technical hires at seed-stage startups and 80% of junior non-technical hires for startups in …read more
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