The African tech ecosystem has witnessed exponential growth over the past decade, with numerous venture-backed startups emerging across the continent. In my role as Investment Manager at Founders Factory Africa, I have witnessed firsthand the power of early-stage companies in driving innovation and economic transformation.
One of the most critical factors for a startup’s success is its ability to attract, retain, and incentivise top talent. Below, we will explore the role of equity in incentivising employees at venture-backed startups in Africa, and delve into the best practices for equity discussions and agreements.
The role of equity in incentivising early employees
Equity represents ownership in a company, and it can be a powerful tool for attracting top talent to a startup. Early employees often take on significant risks when joining a young company, and offering equity is a way for founders to reward them for their dedication and commitment. By aligning…