How It Works
After carefully studying compensation models across Equity (Stock Options ie. ESOs/ESOPs, ESPPs, SARs/ESARs and RSUs), usual Revenue/Profit Linked Incentives, Retention Bonuses, Commissions, Royalties, etc., and speaking to 100+ founders, chiefs of staff and finance leaders, we knew that the solution lies in an alternate tool/ model.
Introducing Wealth Points* to transform how we engage talent and manage cashflows in the new world.
What are Wealth Points?
* Wealth Point ("WP") is a new-age negotiation tool by VenEx, for a business to hire, compensate and engage employees, consultants, service providers, channel partners, etc. ("Participants") by dynamically leveraging its future funding/ revenues/ profits to provide a fixed, merit-based upside to all.
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WPs fill the budget deficit using a fixed upside multiple (eg. 3x) auto-recommended based on your business growth curve, promising greater and predictable wealth to a Participant over the next 2-4 years.
They act as a cross-functional metric that assures the Participant that her profile, loyalty, sweat and performance are transparently recorded over time, and helps the business determine and limit (through the VenEx platform) how much of its future cashflows it would reward each of them with. Each WP redeems as one unit of the local tool.
Issued regularly with pay/fees, WPs stay valid beyond the engagement period, thereby minimizing the Participant's risk in taking lesser cash now, for creating predictable wealth over the next few years.
The redemptions are regular and dynamic, allowing the algorithm to auto-adjust the pace and duration of pay-outs based on the company’s actual business/funding in real-time.
Our platform (and team) automate (and guide) the pay-hike communication to your team, and even your negotiations with new hires/partners.
Our simulators and dashboards save you time & money, enable gamification, encourage skin-in-the-game, and build trust among all.
(Still curious? Scroll to the end of this page *)
How do we implement this?
Show me the Product!
Features covered in this 8-min video:
* More about Wealth Points:
Wealth Points are also:
an inclusive, cross-functional and cross-hierarchical metric for a business to record the cumulative contributions of each employee (including service providers) over time ie. their relative performance and loyalty (ie. the longer a person serves the business and the better they perform, the more Wealth Points they earn every month, quarter or year);
a way to give 2x-4x fixed upsides to employees from the future cashflows in lieu of lesser cash/equity in the short-term;
an instrument for making them feel appropriately valued by the company by acknowledging their worth and contributions now, and accordingly sharing the future wealth with them (a Wealth Point earned in the current year yields exactly one USD/INR/etc. in real earnings to the employee, as a share of the wealth created by the business over the next 2-4 years **);
a way to extend mid-term financial security to the employee as the wealth-sharing continues even after the employment period, until all her hard-earned Wealth Points have converted to USD/INR/etc. and got paid;
a new-age, win-win negotiation tool that helps the business save cash and equity while giving greater ownership and share-of-wealth to its employees;
a way to boost pay offers, pay-hike offers and rewards without impacting cash budgets;
a way to build capital efficiency, in the short-term as well as in the long-term, through dynamic financial modeling;
a new-age and 10x safer alternative to Stock Options (ESOs/ESOPs) and other forms of Sweat Equity for employees;
optionally, a way to make Stock Options/ Equity 10x more effective by providing employees with clear visibility of conditional liquidity (cashflow-based and performance-based) from the offer/grant stage itself.
(** auto-elastic at both ends ie. it can be lower than 2 years or more than 4 years, depending on the actual pace of business growth and/or funding rounds.)