Liquidity for Teams

How does it work?

Customizable Liquidity Windows

Sekondary offers a comprehensive Liquidity for ESOP solution with customizable liquidity windows that enable employees to sell their vested stock options or phantom shares on the Sekondary marketplace.

The frequency of liquidity windows, whether quarterly, semi-annually, or annually, can be programmed by the client, and the conditions for each liquidity window, such as price, discount, and taxes, can also be customized.

Our platform converts the vested part of Phantom Shares Rights into stock options, providing enhanced liquidity and tax optimization for employees, while seamlessly integrating with your existing ESOP or PSOP plans.

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Advanced Liquidity and Marketplace Access

For companies that have raised €1M or more in funding, Sekondary offers advanced products that provide liquidity for employees and access to a secondary marketplace for selling company shares to institutional investors.

Our platform requires shareholder approval, allows employees to pay taxes and fees, and limits the portion of shares sold in the marketplace. All transactions are secure, with tokens converted into company shares and burned after the sale.

We also provide investor relations management support, regulatory compliance, and KYC/AML checks to ensure a smooth and compliant experience for all parties involved.

Investors Access

Advantages of our solution

Our platform offers liquidity, visualization, and tax optimization of the right to receive shares in a company through Employee Stock Option Plans (ESOPs) and phantom share plans.

Liquidity

By digitizing the right to receive shares through an ESOP and utilizing a unique financial mechanism, Sekondary offers employees enhanced liquidity through liquidity windows. This allows them to partially sell their rights to shares on the secondary market more swiftly than with traditional ESOPs. This provides additional flexibility and access to cash for personal needs while retaining a portion of their equity.

ESOP value visibility

Sekondary's approach to digitizing equity enhances value visibility for employees by clearly representing their equity's worth. With the introduction of liquidity windows, employees can easily track the value of their partially owned shares. This promotes better understanding and engagement with their equity, fostering a stronger connection with the company's growth and success.

Tax efficiency

Sekondary's innovative approach to digitizing the right to receive shares can offer tax efficiency for employees. Our unique financial mechanism enables companies to cover the tax liability associated with the shares, reducing the tax burden on employees. Furthermore, with the application of liquidity windows, employees may benefit from lower capital gains tax rates if they hold their shares for a specified period, further enhancing the tax efficiency of the equity arrangement.

Cost-effective

Utilizing Sekondary's unique financial mechanism to fund an ESOP can help companies minimize or eliminate costs associated with traditional fundraising methods like IPOs or venture capital. This approach makes launching an ESOP more cost-effective and financially efficient.

Enhanced Talent Retention

Sekondary's approach to digitizing the right to receive shares through an ESOP offers employees valuable incentives, such as enhanced liquidity, transparency, and tax efficiency. This helps companies retain top talent while boosting morale and employee motivation.

New Motivational Tool

Digitized rights to receive shares through ESOPs enable companies to explore novel ways to motivate and reward employees. By creating tailored rules and liquidity windows tied to specific objectives, companies can incentivize employees to improve overall performance and drive growth.

Streamlined Process

The ESOP digitization process at Sekondary involves the following steps:

Step 1
Contact Us

Share your interest in providing liquidity to your ESOPs and Business Angels, and improving talent retention.

Step 2
Design Rules and Liquidity Windows

We'll work with you to create a plan that fits your specific objectives and the needs of your investors.

Step 3
Marketplace and LOI

We'll provide a pre-offer space on our marketplace for institutional investors and family offices. After receiving an e-LOI, you'll grant them access to your Virtual Data Room for proper due diligence.

Step 4
Transaction and Conversion

Investors will send a binding offer, accept the contract and the Shareholder's Agreement. Following the transfer of funds as per the agreed liquidity windows, investors' rights will be converted into shares of your company (Common shares).