ESOPs in Indian Startups: Wealth Creation or a Mirage?

💼 ESOPs in Indian Startups – Wealth Creation or a Mirage? Many join startups not just for the excitement, but for the promise of equity-led wealth creation. That promise often comes wrapped in ESOPs (Employee Stock Option Plans). But how does it really play out? 🌀 The Typical ESOP Journey: 1️⃣ Grant – Equity is promised. 2️⃣ Vesting – You earn it over time. 3️⃣ Exercise – You pay to convert options into shares. 💸 Tax hits here—on paper gains, before any liquidity! 4️⃣ Exit – You sell… if there’s a buyer. 📉 In reality, most ESOPs don’t reach liquidity due to: – Shorter tenures – No buybacks or exits – High exercise + tax costs Even in funded startups, only a fraction offer liquidity. For many, the dream fades before it becomes real. 🚀 But things are evolving. Startups like Qapita, LetsVenture, trica, incentiv, and others are building tools for ESOP management and liquidity. However, awareness is low, and adoption is still early. This unlocks a simple cycle 🤔: 🔁 Liquidity for employees 💼 Access for investors 🏛️ Governance for startups #ESOPs #Startups #Equity #Liquidity #WealthCreation #IndianStartups