Mastly - Equity as a Service

Motivate your team with company ownership

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We offer a one-size-fits-most framework to organize a team, increase the runway by offering equity instead of cash, and distribute that equity, all for a low monthly fee. A key element of our core product is that equity can be dynamic: we adjust a specific performance-based equity pool according to the productivity inputs of each team member.

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Rich PattonHunter@rich_patton1 · Advisor @ Fan Fund, Mastly
Mastly: Equity as a Service Simplify Legal & Increase Runway Worldwide, there are 300 million companies attempted each year, but only 30% of them become legally incorporated. In the US, approximately 90% of new businesses fail in the first 2 years. What if there were a way to simplify the legal and tech issues even before company formation while reducing cash burn? Mastly’s platform is Equity Management as a Service. We offer a one-size-fits-most framework to organize a team, increase the runway, and distribute equity, all for a low monthly fee. A key element of our core product is that equity can be dynamic: we adjust a specific performance-based equity pool according to the productivity inputs of each team member. Our model lets team members earn equity in lieu of wages, so our service reduces payroll expenses by 25%-50% and legal costs by 5x. It naturally fosters an ownership mindset among all collaborators -- from 1 to 1000+ -- because workers can see their equity position change in real time. Later, when a landmark event occurs, a fair distribution is ensured. Our system empowers founders to maximize motivation among stakeholders by aligning the entire team financially with the long term success of the company. The system also includes automatically-updated best-practices in each regulatory environment. Our legal documents avoid taxation problems that are currently produced by stock-options and RSU plans. Mastly has been available in limited beta to five paying customers. These customers onboarded over 150 workers (users) who have logged over 95,000 hours. These companies have paid $2.1M through the Mastly system and saved $4.8M on their payroll.
Chris MessinaPro@chrismessina · Product designer & entrepreneur
@rich_patton1 how do you quantity productivity?
caseyfentonMaker@caseyfenton · CEO, Mastly, Founder CouchSurfing.com
Thanks for your patience @chrismessina and @eonpilot. It took a couple days to get commenting access to this new account. The short answer is... There are two ways to quantify productivity and the commensurate amount of equity within a Mastly pool: 1. Hour Pool: Hours logged at a certain equity and cash rate per hour(or any time unit) 2. Time Pool: Equity or cash granted for successful completion of defined tasks A longer answer is... Instead of (or in addition to) allowing investors to buy equity in a company, equity can be promised to the company’s team based on how well they perform. Our system makes equity accessible for all team members, simply and easily, not just high profile investors. Team members accept a portion of their wages in the form of dynamic equity. They agree to work for less cash upfront in exchange for equity which may grow in value as the company succeeds. In this sense, the team participates in liquidity events and profits like investors. Mastly is the online system which makes this division of equity legally possible and simple to manage. We take care of all legal documentation and store it online for easy access. We also manage an online dashboard where the company and team can monitor their equity growth. Equity can be in the form of a time pool or a task pool. In a time pool, each participant’s share is calculated by dividing (their number of hours x hourly equity rate) / adding (everyone’s hours x their hourly equity rate). If John works 5 hours at $10 equity per hour and Mary works 2.5 hours at $20 per hour then John currently owns 5x$10=$50 / (5x$10 + 2.5x$20), or 50% of the equity pool. If the company has 1,000,000 shares total in all classes of equity, the Mastly pool is 100,000 shares and today was the liquidity event, John would receive 50,000 shares. A task pool works similarly but instead of recording hours and rates, each task performed is assigned a certain number of points. The time pool is great for large distributed teams who have a specific number of important actions to perform. It should be noted that time pools entries can be in any time unit desired, hourly, daily, weekly, monthly, whatever makes sense for the company. See more on our website: Http://mast.ly Let me know if you have more questions! --Casey
Eon@eonpilot · Swift dev @ eon.codes
@caseyfenton @chrismessina Thanks for the detailed answer. I think the task that mast.ly tries to solve is really one of the most important tasks today. Measuring Hours and Task alone is not enough though so hopefully in the future there will be other quantifiers? Like impact? Which in it self is difficult to measure. stackoverflow / github has figured this out. Its easy to find impact among answers or projects. Task and hour becomes irrelevant.
caseyfentonMaker@caseyfenton · CEO, Mastly, Founder CouchSurfing.com
@eonpilot @chrismessina I couldn't agree with you more. On our roadmap we have a possible solution to impact that I would like to get your feedback on. You open to hearing about it? PM me?
Chris MessinaPro@chrismessina · Product designer & entrepreneur
@caseyfenton @eonpilot I agree that this is an incredibly interesting and worthwhile idea. Getting it to work in practice, when people are often the trickiest part of any technological platform, is what concerns me. I also think that aspects of reputation, impact, vesting horizons, and other levers would be interesting to consider, as long as it doesn't make things overly complex. I'm noodling on how this kind of system could be applied to open source projects or generative communities rather than companies too... for example, I've worked on a couple of digital art startups and it's always perplexed me how we compensate artists for their work in an era when digitization makes the cost of copying zero... there's still value in the artistic work, but our perception is that there isn't any, and so instead we monetize the attention that those works attract through indirect means, i.e. advertising. Could a system like this help in those kinds of contexts where certain work is historically undervalued and not priced according to the meaning generated?
Michael Ramos@michael_ramos
I've been following Casey on this idea for the past two years now and must say it is BRILLIANT!
caseyfentonMaker@caseyfenton · CEO, Mastly, Founder CouchSurfing.com
@michael_ramos Happy to get on a call to discuss more
Eon@eonpilot · Swift dev @ eon.codes
I'm curious: How are you measuring: "performance-based equity pool according to the productivity inputs of each team member"
Justin Gordon@justin_gordon
We've been using mast.ly at Friends and Guests (https://www.friendsandguests.com) since we started the company 1. 5 years ago. It works fabulously for us. Friends and Guests is a combination of a vacation rental listing site, like Airbnb, and a social network, like LinkedIn.
caseyfentonMaker@caseyfenton · CEO, Mastly, Founder CouchSurfing.com
@justin_gordon Thank you for all of your support!