Incentivize shareholders with real, tangible equity.
Without liquidity, today’s equity incentives fall flat.
But that doesn’t mean there aren’t other ways to provide effective incentives.
We provide tools to offer equity compensation employees love without complicating corporate governance.
Insufficient Liquidity Opportunities
Traditional stock options provide only two opportunities for shareholder liquidity – M&A’s or an IPO.
Expensive to Exercise
Exercising stock options is often cost prohibitive to employees who don’t have the cash on hand to purchase their shares at the strike price.
Complicates Corporate Governance
Providing ownership to employees can introduce management complexity in regulated industries.
“Because real equity has immediate value, you can get a lot more done with less. Not to mention, we can tie incentives directly to KPIs, rather than relying on vesting schedules.”
– Graham McConnell, CEO, Nth Round
Give up less equity by providing key employees with more than paper ownership
Many companies allocate a percentage ownership to an option pool for incentivizing key stakeholders. An Nth Round can make that equity go as much as three times further by increasing its liquidity. Traditional options are typically worthless to shareholders unless the company exits or IPO’s. With Nth Round, shareholders can liquidate their equity when they need to, in real-time, with cash up front and no effort from you.
Share ownership without complicating governance.
Provide the financial benefits of equity ownership while consolidating control. Nth Round uses a voting trust agreement to help you avoid the regulatory challenges resulting from distributing voting interests.
Nth Round unlocks benefits that align employees with company goals.
Instead of dealing with promissory notes, a surrender of stock or net exercising, Nth Round provides a market for options making it possible to pre-sell the underlying equity and raise the cash for a cashless exercise.
24/7 Liquidity options
The private trading platform provided by an Nth Round means your employees don’t have to wait for an all-or-nothing liquidity event like an M&A or IPO to finally realize value from their equity. Shares can be traded securely with shareholders authorized by you at any time.
Instead of providing employees with paper equity that might be worth something in the future. Empower them with tangible equity that’s valuable (and increasing in value) today.
Free eBook: Ways to Unlock Liquidity
Learn how to delight your shareholders and employees by using easy tools to unlock liquidity for your private business. Download our free eBook to find out:
- Why offering liquidity helps with employee retention and generates capital for private companies
- The challenges of providing liquidity without losing control
- Options for creating liquidity in a private market, and the associated obstacles