In Latvia, secondary sales of stock options during funding rounds, such as those seen with Lokalise and Printify, offer early employees a tangible reward and financial cushion before a company’s exit. Unlike the typical startup exit through IPO or acquisition, these sales provide a valuable taste of the potential financial gains from stock options, especially in a region with limited exit success stories. As European startup ecosystems face sluggish IPO markets and less frequent funding rounds, secondary sales are becoming a crucial mechanism for motivating and retaining talent.

Startups often use equity compensation to attract and retain talent by offering employees a stake in the company, but the structure of this compensation can vary widely. Key decisions include how much equity to reserve for employees, which roles should be eligible, and whether to use stock options or RSUs, with considerations for vesting periods and exercise windows. While equity compensation can motivate and align employees with company success, it also risks dilution of founder control and can be complex to manage, especially across different jurisdictions and stages of company growth.

Revolut is in discussions with Greenoaks to sell around $500 million of employee-owned shares, aiming to boost its valuation to $45 billion ahead of a potential IPO. The sale would allow early employees to cash out their holdings, a common practice when startups go public. This move also positions Revolut advantageously despite the uncertain IPO climate due to recent higher interest rates.

Revolut plans to allow employees to cash in shares worth US$500 million, with Morgan Stanley likely coordinating the process later in 2024. This transaction, aimed solely at employees without raising new capital, seeks to maintain Revolut's US$33 billion valuation from its 2021 funding round, bolstered by a doubling of FY2023 revenue to £1.7 billion and a growing customer base exceeding 40 million. As Revolut awaits its full UK banking license, it continues to expand its offerings, including launching an eSIM and advanced AI fraud protection, underscoring its confidence in achieving its high valuation.

At the Canva Create event in Los Angeles, a playful rap performance highlighted the cultural differences between Australian and US tech scenes, occurring just after a significant share sale made many early Canva employees millionaires. This spectacle underscores a broader trend among Australian startups to emulate Canva’s employee equity approach to motivate and retain talent. Despite mixed reactions in Australia, such cultural expressions and generous equity schemes are seen as vital for driving innovation and growth in the tech industry.

Fast fashion giant Shein is considering an IPO on the London Stock Exchange, potentially valuing the company at $66 billion (£51.7 billion). Known for its cheap clothes and social media campaigns, Shein has faced criticism over environmental practices and labor conditions. The company, which may file the necessary paperwork this week, is seeking a UK listing after encountering regulatory hurdles in the US, aiming to boost its green credentials and expand its resale platform to the UK and Germany.

Israeli company AppsFlyer is considering an IPO, aiming to raise $300 million with assistance from investment banks like Goldman Sachs, JP Morgan, and Bank of America. Employing around 1,500 people and expecting $400 million in revenue this year, AppsFlyer specializes in technology that tracks the origins of app users. Founded in 2011, the company was last valued at $2 billion in 2020 and has investors including General Atlantic and the Salesforce investment fund.

Stablecoin issuer Circle is moving its legal base from Ireland to the United States, as confirmed by recent filings with the High Court of the Republic of Ireland. This move may be linked to Circle’s potential initial public offering (IPO) plans, despite the U.S.'s higher tax rates compared to Ireland. Circle, which confidentially filed for an IPO in January, issues the USDC stablecoin and counts major financial firms like Fidelity and BlackRock among its investors.