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.

Selling 100% of a company isn't the only exit. Founders can take "multiple bites of the apple" by selling a majority stake but retaining significant shares. This allows them to benefit from future sales or an IPO under new ownership.

After seeing his first company's value explode post-acquisition, this founder now prioritizes partial exits (recaps with equity roll) over all-cash deals. This strategy allows him to de-risk while retaining significant upside for future growth, a stark lesson from his first exit.

When discussing compensation, frame equity as providing four things: cash flow, sale bonus, risk, and control. Most employees only want the first two and actively avoid risk and aren't getting control anyway. This simplifies the conversation and allows you to offer profit share and sale bonuses instead of actual shares.

The fractional model serves as a low-risk trial period. Companies can vet a senior leader's impact and cultural fit before committing to a full-time hire. Simultaneously, the executive can determine if they enjoy the company's culture and challenges before joining permanently, de-risking the move for both sides.

To attract executives without the lure of a quick liquidity event, Maloa offers equity to top management and robust annual bonus programs tied to company success. This structure appeals to leaders who value stability and sustainable growth over a potentially destructive, high-risk sale.

Giving management 15% equity instead of the standard 10% is a small cost to the sponsor (e.g., an 85% stake vs. 90%). However, this 50% increase in potential wealth for management creates significant alignment and motivation, leading to a much larger overall enterprise value that benefits all parties.

For operators with a unique, high-demand skill like political strategy, taking equity for services is a superior model to traditional VC. It captures 100% of the upside and avoids the distractions and economic dilution of fundraising, LP management, and board responsibilities.

Early-stage startups desire senior RevOps leadership but can't afford a full-time hire, often settling for junior talent who learn on the job. Fractional agencies solve this by providing access to world-class, experienced talent on a flexible, as-needed basis, de-risking a critical function.