 Hello all. I'm Heiki, co-founder and CEO of Hapionaut, and in the next 15 minutes I'm going to tell you how we are using equity to get motivation levels higher. But just before that, a few words about companies like what we are doing in case you haven't seen our service before. So we are providing service for roughly 5000 customers so that they know real time how happy customers are in their locations. So we have like many retail customers, many service customers, roughly 200 airports which are using our service. But like before I tell more about like how we are serving the equity and also like why we are doing that. We have like few rules what we have agreed together with the owners and let's start with those. So the first one is that like we think that no one is able to do success stories alone. It's not only like the founder or like few founders or few people, it's basically like teamwork. So because of this, we think that the success will be also shared with like big group of people. And that's like number one rule what we are having. Then like second thing what we agreed together with the other shareholders is that like it doesn't make sense for us to work in the board of directors position. Because like we all know that there are people who are like focusing on that. They know how to create like how to support like long term plans, what kind of things are critical for companies to make like success stories. So for that reason we agreed that let's make always sure that we have best possible people there. And actually like last year we got award here in Finland that we had best board of directors team in Finland. So no employees, no one from the like employees are part of the board. Then the third thing. So this is also like one critical that like we want to make sure that like no one as an owner can justify their opinions or decisions. So basically like it means that on the operational level like owners don't have any special rights. And the reason why we wanted to do this was that like we want to give the space for the employees. So that they feel that like they have room and they can tell about their ideas about the things what could make company more successful. And the fourth thing what we agreed was that during the first years actually like basically in first two years we didn't get any salaries. So all the money what we got in we were basically using that money to develop our product father. And to make sure that it works for the customer and it's creating the value what we are thinking that it should create. But after two years we started to get salaries and the salaries were like from at first I think it was like 200 euros, 500 euros, 1000 euros. And we all had same salaries. So at this point we had roughly 10 people at happy or not. And almost everyone was a shareholder and with the low salary. Like having like it would have feel like weird to discuss with other shareholders that hey like I'm having like 300 euros salary. And you are having like 350 euros salary getting like 50 euros more. So like we were thinking like that just doesn't make sense. But then about the about like how we are actually serving the equity. And like I was thinking that it would be like it would be maybe maybe like interesting to hear some stories about how how like how companies are actually doing that. So when we started the business we were basically giving shares. So we were thinking that okay should we give like stock options or what the structure should be. But because like like all of us know the shares those are the ones which are kind of like the most valuable thing. And because of that we agreed that hey let's give shares. So the people who came first they got more people who became later they got a little bit less. But still like we were always giving the shares. And after like after six years we changed the model. And this is roughly at the same time when we started cooperation with investor called No Show. So basically in past two years we have been we have had like several employee stock option plan in place. And what it means is that we are giving stock options. And here you can see the structure like how how we have built up that. So basically the stock options are kind of like free for the employees. Of course those stock options has to have certain like strike price. Like that's the way how it has to be done because of the taxation. And then we have like like total of four year wasting time. So what does that mean is that like if someone is getting let's say like three stock options. So with a one year cliff like during the first year you are getting like basically zero stock options. But during the second year you get one third year one and on fourth year you get one stock stock option. So after four years you have like four stock options. And after that period you can also like purchase those shares. And if the person leaves you lose the right to the stock options. That's the program what we have in place right now. And then about like how we are how we are like sharing this. So this like kind of like the roughly numbers so that you can you can like get idea that how like how we have been doing this. So like roughly like equal part with the founders, with the VC and also with the other employees. So then about like what's the great thing like when like having large ownership space. And like these are these are the things what we have seen happening. And the first one I think like this may be the most critical. So having like better customer experience. So like one story I think like it was our second year when we got like like pretty big customer from the Sweden. They have roughly 70 locations and they took our service for all locations. And they still our customer. And like during that time we just got our service up and it wasn't like too stable yet. So we had like issues with with like few customers. Also with these Swedish customers we noticed after one month that actually like we lost connection to all those terminals what we are having out there. So I was like oh no like our biggest customer they have issue with our service and so what will happen now. And like we have the data is something like where we are focusing most so most of the people are focusing on the data. But we have one guy who is also focusing on the hardware part and making sure that it works. So that person came to me and told that hey like we have this issue. And I'm going to take my car and I'm going to drive to Sweden and fix those terminals in every single location in the 70 locations. And that's something what happened. And I was like wow that's that's amazing like if that person wouldn't have the shares of the company like would he have done that. I don't think so. So I think like that's that's one like that's like one great benefit. Then like happier employees of course like when when like your basically almost your whole team is other shareholders. So it's kind of like it's kind of like common thing that hey let's make sure that we also we kind of like we make money but we also have fun here. So so and and with the bigger group big group of owners it's easier to tell people that hey like happy employees it's like like all of us can contribute on that. It's not only like let's say like HR people. So if I'm not happy I go to HR person that hey can you can you do something. I'm not happy now. It's like all of all of us are responsible for that. And that's easier when you have many shareholders. Change management is easier. So so of course like like the owners they like like they like to it's like critical to get company running. And during the first years that's the kind of like journey what what like like all starts up startups are going on that hey how we make this works. And and and we all know that you have to use like a lot of changes to make things happen. And when you have like a lot of shareholders doing the changes is actually like way easier because always the changes about how we get this actually work. Faster problem solving. This is something what we have seen. And I think like this is this is basically because people are just like spending more time and they are like thinking more not only like between 8 a.m. And 4 p.m. About like how how we could solve these issues. So it's also like people are like like sending slack messages during the like evening hours or during the weekend. Hey like we have this issue and now I maybe got like great idea that how we could solve this. And those people are of course sharing those ideas with other people. That's that's I think that's that's definitely helping helping companies and has been helping us also like a lot more ideas about how company could perform better. So this basically relate to this previous topic. So when we like like we have of course like certain goals certain like yearly goals certain like long term goals. So people are thinking about those targets and thinking about like how we can get there. So so like and having this kind of like open environment where it's not only about the owner but it's about everyone like companies getting much more great ideas about how to make this success. Then the next thing so so usually like like maybe there are startups and success stories where people haven't been working a lot but at least in our case that's not the case so it's like creating the success story. It also means that like you have to do quite a lot of stuff actually like a lot of stuff and to make things successful. Like sometimes it means like really long days and it can be like during the first years it also meant that like sometimes working like Saturdays sometimes working Sundays. That was something what we were doing to make to make that success happen better quality. I think like this is related to like when you are when you are building house for yourself you you maybe focus more on the quality. But if you are if you are like just building houses for other people then then then the quality is not maybe like so like top high priority. So that's kind of like one great thing what we have seen when having large ownership base and the last one flexible cost structure. And that's something like that's creating like when let's say that you have like actually like maybe like story about the previous company not like happy or not. We were in gaming business before so so we had roughly 40 employees and we had the situation where we had only 600 euros on our bank account. So the cost level was like like here and we had like very little money left. And we knew that we are going to this is going to be situation will be like much better but isn't going to be in the following days or following two weeks. It's going to be better in about one month two months. And like what we did basically with the same like large ownership structure is that like we like we were discussing together with with the owners. And we had we had like I was telling a tale like this is the situation of what we are having. And this is now like like really tricky. But like one option what we could do is that instead of paying salaries this month we pay those salaries after two months. And how does that sound. And I was like I didn't know I didn't know of course like what's the risk response will be. But the people were like of course like if that's something what we have to do of course we do that to save the company. And that's what we did. And the situation was fixed. And actually like like from that's like really scary situation after one year we sold company with like many many many millions. So I think that was all. I hope you learned something new about how to share equity and what kind of benefits it can be. And I hope you have had great great time here at great last event. Thank you.