Case study · anonymised
An option plan for the team
The matter is anonymised — client type, industry and scale. Past results do not guarantee future outcomes.
- Client type
- Marketplace company
- Industry
- Platform · growing GMV
- Scale
- Before a Series A round
Problem
What they came with
The company wanted to tie in key people before a round, but the founders feared two things: the tax consequences for the team and excessive dilution of their own shares.
Without a clear plan they risked losing the people the company stood on, at the worst possible moment.
Solution
What we did
We compared three models — options, warrants and shares — for their tax consequences and impact on the structure. We proposed a model fit for the stage and the round plans.
We set the pool size and vesting rules together with the future investor, so the ESOP wouldn’t become a matter of renegotiation during the round.
Outcome
The ESOP was implemented before the round. The pool and vesting were agreed with the investor up front, so they didn’t slow the transaction, and the team got a clear stake in the upside.
Practice area
Lawyers in charge
Aleksandra NowakAssociate
First step
Sound familiar? Book a call.
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