Vestd X Onstage

Sharing equity involves distributing ownership stakes in a business to employees or team members. This can be done through options, shares, or other instruments, often as part of a compensation package.

Vesting refers to the process by which employees earn ownership of equity over time or upon achieving specific milestones. For example, a four-year vesting schedule with a one-year cliff means an employee earns equity gradually, but only after the first year.

Sharing equity can help attract and retain top talent, motivate employees, align team goals with company performance, and foster a sense of ownership and loyalty within your organisation.

• Share options (e.g., EMI / Unapproved Options): Employees have the option to buy shares at a set price in the future.
• Growth shares: Employees gain ownership of a portion of the company’s future growth in value.
• A Company Share Option Plan (CSOP): is a tax-advantaged share scheme in the UK that allows employees to purchase company shares at a fixed price, with potential tax benefits on any gains made upon selling the shares.

The Enterprise Management Incentive (EMI) scheme is a UK government-backed share option plan designed for small to medium-sized businesses. It provides tax advantages for both employers and employees while offering a flexible way to reward team members with equity.

This depends on your company's size, stage, and goals. Typically, early-stage startups allocate 10-20% of equity to employees through an employee share scheme, but the percentage can vary based on specific roles and contributions.

Yes. Tax implications vary depending on the type of equity shared, the country’s tax regulations, and the employee’s circumstances. For example, EMI options in the UK offer significant tax benefits, while other schemes may have different rules.

Yes, but it’s important to structure these arrangements carefully. Growth shares or other customised agreements are often used for contractors or advisors since some schemes, like EMI, are restricted to employees.

You can include leaver provisions in your agreements. The specific terms depend on whether the employee is a "good leaver" or "bad leaver."

Proper structuring can prevent dilution of control. For example, issuing non-voting shares or creating growth shares tied to future value ensures you maintain decision-making authority while rewarding employees. Remember though, dilution is not necessarily a bad thing.

Allocate equity based on the individual’s role, contribution, and the value they bring to the company. Key team members in leadership, sales, or engineering roles often receive a larger share due to their impact on growth. Equally, you may want to consider when the employee / advisor joined the company, the earlier they came on board, the more risk they have taken.

• Determine the type of equity plan that suits your business.
• Use the Vestd scheme designer & easily adopt our articles to allow for Growth Shares in particular.
• Use a sharetech platform (like Vestd) to streamline administration.

Adjustments can be made, but changing an equity plan may require employee consent and legal review. Communicate openly with your team about any changes.

• Tie equity rewards to performance, milestones, tenure.
• Offer regular updates on the company’s growth and valuation.
• Foster a culture of ownership and transparency around equity benefits.

The InVestd Raise add-on is designed to support startups and businesses in preparing for and executing funding rounds. It includes investment round modelling, S/EIS Advance Assurance assistance, legal document templates, secure data rooms, and more to streamline the fundraising process.

This add-on is ideal for startups and small businesses planning to raise their first or subsequent investment rounds, providing comprehensive tools to facilitate successful fundraising.

• Investment round modelling: Explore future funding scenarios to make informed decisions.
• S/EIS Advance Assurance tools: Assistance in applying for tax-efficient schemes to attract investors.
• Founders agreements:
  Protect your stake and build custom founders agreements, vesting schedules, and leaver provisions on the platform.
• Legal document templates: Access to pre-vetted legal documents tailored for fundraising needs.
• Secure data rooms: Store and share important documents with investors securely.
• Pitch deck template: A professional template to help present your business to potential investors.
• Share issuance: Issue shares directly through the platform with full Companies House integration.
• S/EIS Compliance Statements: Documents you'll need to provide to your investors once shares are issued.

The add-on equips you with professional tools and resources to streamline the fundraising process, ensuring you are prepared and compliance is a doddle, making your business more attractive to investors.

Yes, the tools are perfect for preparing your business for future fundraising, ensuring you're always investor-ready by managing your digital cap table properly.

Once subscribed, you can access all features via the Vestd platform under the 'InVestd Raise' section.

The subscription costs £100 per month + VAT as an add-on to existing plans, with a 12-month minimum contract. There are no percentage-based completion fees, engagement fees. You can raise as much as you need without any limits.

Our customer success team offers onboarding assistance and tutorials to help you maximise the tools.

Our platform provides insights to help you improve your Advance Assurance application, and our support team can guide you on the next steps.

While the add-on provides the necessary tools to prepare for investment, it does not directly connect you with investors.

The subscription requires a 12-month minimum contract, so cancellation can only take effect after the 12-month term. You will retain access to the features until the end of your billing cycle.

Vestd is fully compliant with GDPR regulations and uses state-of-the-art encryption to protect your data and documents.