Data-driven legaltech platform SeedLegals has launched their Share Option Scheme solution (also commonly known as ESOP) to Singapore and Hong Kong based startups and small businesses, enabling them to create complex share option agreements, allowing them to reward and incentivize their employees, attract top talent and future proof their business, more efficiently than ever before.
The Asia-Pacific region is flourishing, with some estimates suggesting the startup ecosystem could be worth US$1 trillion by 2025. But founders are navigating a difficult landscape- from acquiring domain knowledge to deploying complex employee incentive schemes, retaining talent in the face of global shifts such as the Great Resignation and raising funding continuously for company growth. According to a study, almost a third of the founders in Southeast Asia have a lack of understanding about employee share option schemes.
Share option schemes, while not yet popular in the region, are starting to gain momentum as startups and small businesses look for cost-effective ways to attract top talent in a highly-competitive job market. Share option schemes are the promise of ownership of a stake in the company at a fixed point in the future, at a fixed price. Through the schemes, salaries can be topped-up and businesses can align the interests of their employees with their own by giving them a stake in the growth and success of the business.
Hsiang Low, Head of Asia-Pacific at SeedLegals said, “Employee share option schemes foster a stronger sense of connection between employees and the business. But in the current startup landscape, the process of deployment is a tremendously tedious undertaking for the founders and we believe there is a better way for startups and small businesses to access these solutions in a way that not only accelerates growth but makes it easier for employees to be part of the journey too.”
SeedLegals has helped 2,500+ companies set up and manage their share options schemes in the UK to-date, and gathered from that experience that one of the reasons that startups and small businesses are hesitant to or wait to set up their share option schemes is because it is difficult to truly communicate the value of options to their employees. SeedLegals has made it easy for employees to understand the value of their options. All they need to do is log in to their dashboard and through Option Holder View, view their options and calculate how much they could be worth. Employees also have access to guides that explain the terms of their grant and how vesting works, and of course, SeedLegals’ signature unlimited support for any queries they may have.
“Setting up early is critical to show good governance to investors, attract top talent and provide transparency to employees,” added Low, “it is our experience that teams that earn equity together, excel together.”
With complex shifts such as the Great Resignation and The Great Reshuffle, now more than ever, founders and business owners need to rethink traditional employee engagement and incentive methods and embrace new methods of talent acquisition, retention to enable long-term growth. SeedLegals has simplified share options schemes – all you need to do is select terms from the automated intelligent workflow, share and e-sign on-platform, then adopt the scheme. Options can be granted and options certificates can be issued on platform.
SeedLegals is offering startups and small businesses a special introductory price of S$1,240 as a one-off fee to set up their share option scheme with an unlimited number of employees and option grants (a subscription is required to grant new options and give employees access to their dashboard).
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