Business is booming for Medal.tv as house-bound users flock to the gaming startup, making it one of the rare coronavirus success stories. Half its employees are still taking salary cuts in the wake of the outbreak. From a report: In return, the 33-person company is offering those employees restricted stock units which will vest over one year. The company intends for employees to be able to sell those shares when Medal eventually closes its next round of financing. Timing on that: to be determined. “If everything goes well, not only does the company save money and slow down its cash burn, but the employees that exchange their salary for stock will have a bigger payout during our Series B round,” said co-founder Pim de Witte.
Medal is among a growing number of startups offering stock-for-salary trades to preserve cash as the tech industry reels and economic uncertainty mounts. Medal, which lets players clip and share snippets of games on social media, has doubled its user growth rate since shelter in place orders started. The company said while high earners were “strongly encouraged” to take the deal, the pay cut and stock option swap was voluntary. It’s a move that only works for “employees who believe in the financial outlook of your company,” De Witte said.
of this story at Slashdot.
Source:: Slashdot