ElevenLabs raised a $100M round entirely for employee secondaries. The CEO's rationale is that by allowing early team members to de-risk and realize financial gains, it solidifies their commitment to the company's multi-year mission rather than creating pressure for a quick exit.

Granting stock options is only half the battle. To make equity a powerful motivator, leaders must constantly communicate a clear and believable narrative for a future liquidity event, such as an acquisition. This vision is what transforms paper ownership into a tangible and valuable incentive in the minds of employees.

Ally reinforces its "brand is everyone's job" mantra by giving every employee 100 shares of company stock annually. This creates a powerful owner's mindset, directly linking the company's success to the brand experience delivered by every individual, from the call center to the C-suite.

Taking a small amount of money off the table via a secondary sale de-risks a founder's personal finances. This financial security empowers them to reject large acquisition offers and pursue a long-term, independent vision without the pressure of life-changing personal wealth decisions.

To conserve cash, especially in a downturn, founders can pay key employees 10-30% below market rate in salary. The key is to compensate for this deficit by offering double or triple the industry standard in equity. This strategy attracts top talent aligned with long-term success while keeping the company's cash burn rate low.

When planning for the business's future without you, prioritize the stability and job security of your team. Confident and secure employees are the best guarantee that your clients will be taken care of, creating a more resilient and sustainable legacy.

While bonuses tied to revenue incentivize employees to perform specific tasks, they are purely transactional. Granting stock options makes team members think holistically about the entire business's long-term health, from strategic opportunities to small cost savings, creating true psychological ownership.

Founder Peter Daring deliberately avoids outside investors to protect Peak Design's core mission: for employees to live "happy and meaningful lives." This employee-forward culture is prioritized over the growth-at-all-costs pressure that comes with external capital, shaping every business decision.

Forgo traditional sales commissions at early-stage companies to incentivize what's best for the business, not just the individual. By offering a competitive salary and strong equity instead, salespeople are motivated to help with onboarding, cross-functional projects, and team building without seeing it as a financial loss.