The topic of employee participation plays an important role, particularly for start-ups and growth companies. Retaining and motivating talented employees over the long term is challenging, especially in the early stages of a company. Employee participation is an important lever for successfully competing for talent. In particular, virtual participation (Virtual Stock Option Plan (VSOP) or phantom stocks) is the preferred alternative model for German start-ups.

Find out more about the legal advantages and disadvantages of virtual employee participation from our GÖRG partners Sebastian Frech and Prof Dr Stephan R. Göthel in a specialist article in the special edition of the VentureCapital Magazin ‘Start-up 2025 - Der Wegweiser für Gründer’.

Read the full article in German here.