Palindrome

Learn how high-growth, tech startup Palindrome implemented their share option scheme with equiCraft 

The challenge

Although Palindrome had already designed and adopted a share option scheme with external legal counsel, rolling it out to the team revealed a familiar startup problem; traditional advisors deliver the documentation, but not the execution. They are not set up to operationalise schemes or move at the pace required by high growth startups, meaning the burden falls back on founders to make it work.

For fast growing startups with limited resources, the practical, day to day tasks of implementing a share option scheme can quickly become bottlenecks, creating risk and frustration. These tasks range from employee education and support, executing the signing process efficiently or compliance with HMRC requirements.

As a result, employees can be left waiting for their option agreements and their trust in the business eroding. Compliance begins to waver as deadlines loom and processes are not established.

Palindrome’s founders needed a partner who could execute quickly, handle the detail and work at the pace of a fast moving startup, allowing them to focus on scaling the business.

The equiCraft solution

equiCraft partnered with Palindrome to operationalise the share option scheme efficiently, effectively and at a speed required by the business. Key elements of the solution included:

1. Employee education

• Ran a company all hands training session to explain how share options work and focus on specific details of the Palindrome scheme like the vesting schedule and tax implications
• Provided always on employee support to guide through the process and answer any questions that arose

2. Employee rollout

• Delivered personalised option agreements to each eligible employee
• Managed the digital signing process to ensure speed and accuracy

3. Cap table management

• Updated the cap table with each grant
• Onboarded all employees to the platform, given them a real time view of their equity

4. Compliance support

• Completed the HMRC registration process for the share option scheme
• Ensured all HMRC notifications for EMI options were completed accurately and on time

By handling the complex operational and compliance tasks, equiCraft allowed the founders to focus on the business while ensuring the scheme was smoothly implemented, fully compliant and clearly understood by employees.

The impact

With equiCraft’s support, Palindrome achieved:

• An efficient rollout where every employee received and signed their agreements quickly
• Accurate and up to date cap table management
• Full HMRC compliance with registration and EMI filings
• Informed employees where the team felt confident and motivated by their equity
• Reduced administrative burden on the founders, freeing them to focus on growth

Most importantly, Palindrome now had a fully operational, compliant and scalable share option scheme that supported both hiring and retention.

Why equiCraft

equiCraft stood out because of their ability to match the pace of a fast moving startup while managing the complex details.

"equiCraft has startup experience and has been in our shoes. They move at the same pace we do and understand the realities and pressures founders face every day. Rolling out our share option scheme to the team could have been a major headache, but they made it simple, compliant and seamless. Having a partner who can keep up while giving clear, practical guidance has been invaluable.”

— Ed Beckett, Co-founder Palindrome

By combining operational expertise, compliance knowledge and a founder friendly approach, equiCraft ensured Palindrome’s share option scheme was successfully implemented and ready to scale.

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