Why was it so hard to manage tech fundraising processes last year? Which countries and industries are leading the way on progressive, inclusive equity in 2022? And can executives learn from their employees and investors when it comes to share ownership?
The State of Equity and Ownership 2022 has the answers.
32% of tech companies raising money in the last 12 months raised more than $20 million. On average, just a fifth of companies in other industries raised rounds of that size or higher.
7% of founders who raised money in the last 12 months didn’t discuss share options at all during the fundraising process.
A third of founders think that offering employees share options makes little or no difference to their motivation. But almost three quarters of employees report that their share options do make a real difference to how they feel about work.
We want to make sure companies raising funds talk about #EquityEveryTime. Because the commercial and cultural arguments for offering equity to employees is clear, we challenge investors to bring employee share ownership to the discussion if companies do not.
We want investors to ask two key questions of potential portfolio companies:
Have you presented your full cap table to your employees, either in a company-wide discussion or as a permanent resource?
If your company performs as you expect in the years ahead, do you feel that the equity you are offering to employees is a fair reward for their efforts?
We hope that these questions will help foster open and productive discussions, and make sure investors and companies discuss #EquityEveryTime.
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Equity Management for Scaling Companies
