Photo: YouTube Screenshot / Ecquire
Tal Raviv, co-founder of a startup that aggregates your contacts from services like Gmail and LinkedIn named Ecquire, at one point faced a crisis in his company: there wouldn’t be enough equity to attract future employees.So he offered his co-founders one of two options to get shares of the company back:
- Haggle over the valuation of the company for the stock and buy it in cash, or…
- Pick a song for Raviv to dance to in the middle of Tel Aviv’s busiest intersection, at its busiest time of the week.
Raviv’s co-founders went with the second option. The results were fantastic, as you can see in a video embedded below.
It’s important that startups have equity to give to employees because they often can’t compete with mega-salaries of tech giants like Google or Facebook.
Equity gives employees the option to take a bet that the company will sell or go public, making the employee’s stake in the company more valuable.