Find Australian startups offering equity
A curated list of Aussie companies where equity is part of your compensation.
A curated list of Aussie companies where equity is part of your compensation.
Global video production marketplace and content creation platform
Project management and client work management platform for service businesses
Global leader in navigation and autonomous systems.
Digital commodity management and supply chain platform for agriculture
Global payments and financial infrastructure for businesses
Sweat equity refers to the ownership stake you earn through your hard work, dedication, and contributions to the company rather than through financial investment. It's the equity you 'sweat' for by putting in long hours, building the product, and helping the company grow. This is especially common in startups where employees take below-market salaries in exchange for equity that could become valuable as the company succeeds.
Ownership through equity compensation allows you to share in the company's success. As the startup grows and increases in value, your equity becomes more valuable too. This can lead to significant financial rewards if the company is acquired or goes public. It also aligns your interests with the company's goals, making you more invested in its success.
ESOP stands for Employee Stock Ownership Plan. It's a program that gives employees ownership interest in the company through shares or stock options. In startups, ESOPs typically grant options that vest over time, allowing employees to purchase company shares at a predetermined price. This helps startups attract talent by offering potential upside beyond just salary.
Equity typically vests over time, commonly over 4 years with a 1-year cliff. This means you don't own any equity for the first year, then 25% vests after year one, followed by monthly or quarterly vesting for the remaining 75%. Some companies also have acceleration clauses for events like acquisition or termination.
When you leave, you typically keep the equity that has already vested, but you'll need to exercise your options within a certain timeframe (often 90 days). Unvested equity is usually forfeited. Some companies offer extended exercise periods or early exercise options. Always check your specific agreement and consider tax implications.