Not Optional

Huge news for the UK tech ecosystem: as of Monday, the UK is now one of the best places for employee equity, globally. 🇬🇧🚀 For years, the Enterprise Management Incentives (EMI) scheme has been the UK's "secret weapon" for attracting global talent. But as the ecosystem matured, the rules started to lag behind. We heard it from founders constantly: the caps were too low, and the durations were too short for the long-term journey of scaling a category-winner. At Index Ventures, through our Not Optional campaign, we’ve been fighting to fix this. What’s changing? The UK government has listened to the startup community, making the EMI scheme significantly more inclusive:  • Scale bigger: The employee headcount cap has doubled from 250 to 500 people.  • Grow faster: The asset threshold has leaped from £30m to £120m.  • Longer horizons: The scheme duration has increased from 10 to 15 years. This isn't just a technical update; it’s a competitive level-up. These changes move the UK to the top of the G7 ranks for employee equity. It means British startups can now more effectively compete with tech giants and global corporates for the talent they need to scale. We’ve seen similar wins recently in Germany and through the EU–INC proposal—proving that when we speak with one voice, we can move the needle. A huge thank you to the 500+ CEOs and supporters who backed the #NotOptional campaign. A special mention to Alex Depledge, who championed this effort tirelessly from inside the government to ensure the voice of the founder was heard. Thanks also to Varun Chandra and Rachel Reeves for their leadership in delivering these reforms, and to Dom Hallas (Startup Coalition) and the founders who spoke up over the years, including Tom Leathes (Motorway), Nik Storonsky (Revolut), Taavet Hinrikus (Wise and Plural), Charles ▫️ Delingpole (ComplyAdvantage), and Guy Podjarny (Tessl). Finally, a shoutout to my colleagues Dominic Jacquesson MBE, Hannah Seal, Martin Mignot and Vojtech Horna for their relentless advocacy.

BREAKING NEWS: Justice Commissioner Michael McGrath calls for pan-European stock option scheme delivered through regulation: “Having to navigate up to 27 different systems as they seek to attract and retain top talent in Europe is very cumbersome." EU-ESOP is #notoptional EU–INC Source: POLITICO Europe's Pieter Haeck and Tim Ross

🚨 The UK now has the best stock option scheme of any major economy. 🇬🇧 Following changes introduced today in the UK Budget, Britain has the most attractive employee ownership scheme of all major economies, making it easier for startups to attract and retain the talent they need to succeed. For years, the Enterprise Management Incentive (EMI) scheme has been a secret weapon for UK startups—enabling them to offer meaningful equity to early employees. But outdated caps and rules have held it back. Now, the UK government has announced reforms that will transform EMI into the best scheme among major economies: ✅ Employee headcount cap raised from 250 to 500 ✅ Asset threshold increased from £30m to £120m ✅ EMI duration extended from 10 to 15 years These changes matter. The old thresholds were designed for a time when startups exited in 7-8 years. Today's reality is different: AI companies need larger funding rounds for compute costs and talent, while the average time to exit has stretched beyond 12 years. Stock options are how startups compete for talent against big tech and other cash-rich companies. They turn employees into owners, align incentives for the long term, and generate growth. The #NotOptional campaign founded by Index Ventures with support of from hundreds of founders has worked alongside entrepreneurs, lawmakers, and startup associations to push for reforms like these across Europe. As Hannah Seal from Index Ventures wrote earlier this year, UK’s “secret weapon for attracting world-class tech talent is broken”. Today, the UK government fixed it.

The UK is poised to transform its stock option landscape. If Chancellor Rt Hon Rachel Reeves implements the proposed EMI reforms this November, the UK will have the most competitive equity scheme among major economies in Europe, and globally. 🇬🇧 #notoptional Founder of Motorway Tom Leathes explains 👇

𝗘𝘂𝗿𝗼𝗽𝗲 𝗻𝗲𝗲𝗱𝘀 𝗶𝘁𝘀 𝗼𝘄𝗻 𝗗𝗲𝗹𝗮𝘄𝗮𝗿𝗲. In 1913, Delaware made a calculated bet that reshaped the global economy. By creating a simple corporate structure, it became home to the world's most transformative businesses. Today, Europe faces a stark choice: continue with fragmentation, or create its own EU–INC. As I shared with Fortune (link in comments), the numbers are sobering. Publicly traded companies started in Europe over the past 50 years are collectively valued at around $420 billion. Their U.S. counterparts? Nearly $30 trillion, almost 70 times as much. The problem isn't talent or ambition. European founders have built Adyen, Revolut, Spotify, and many emerging companies are on path to go even further. But while a Delaware Inc can raise capital and expand coast-to-coast seamlessly, founders operating in the EU must navigate 27 regulatory systems, and explain to engineers in Munich why their stock options differ from colleagues in Madrid. There is no EU single market for startups, only 27 different countries. But momentum is building. The EU–INC movement has gathered over 18,000 signatories, from leaders at Alan (Jean-Charles Samuelian-Werve), Mistral AI (Arthur Mensch), Klarna (Sebastian Siemiatkowski), Revolut (Joe Heneghan), Supercell (Ilkka Paananen), and Stripe (Patrick Collison), and approval from major EU institutions. European Commission's President Ursula von der Leyen has committed to reform. The danger? Brussels is already considering piecemeal, incremental measures. This won't work. Fragmentation must be fixed at the heart of Europe. Half measures won't solve founders' problems or create the competitive advantage Europe needs. The ambition should be clear: make Europe the best place in the world to start and scale a startup. That's why I'm backing EU–INC, and why Index is working tirelessly to turn this ambition into reality. Europe doesn't need another directive or committee. It needs EU–INC.

🚨 Breaking news: The President of the Czech Republic has signed the country’s first-ever effective stock option policy into law, coming into force on 1 January 2026. This landmark reform will make it easier for Czech startups to attract and retain top talent, bringing the ecosystem closer to international best practice. It’s the result of years of hard work by the Czech startup community. We’re proud that Not Optional has been able to play a part in these efforts. We will update our country rankings (https://lnkd.in/dd6pPaUN) in the coming weeks. 🙏 Lukáš Konečný, Vit Horky, Martin Jiránek, Barbora Werdmölder, Radek Špicar, Martin Svalbach, Marketa Prenosilova, Petr Očko, Lukáš Vlček, Tomas Ditrych Stefan Surina, Vojta Rocek, Isaiah Baril-Dore, Dominic Jacquesson MBE, Vojtech Horna, Jan Hammer Go 🇨🇿 #notoptional #esopasap

Countries that build and retain world-leading technology companies will define the economic landscape of tomorrow. But British startups are fighting with one hand tied behind their backs due to policy frameworks fashioned for a different era. Read my commentary in today’s The Times for more on why the government should: 1️⃣ Modernise EMI for the AI-age. The current thresholds – 10 years, 250 employees and £30 million in assets – were designed for a different time. I argue it should be raised to £200 million, 1000 employees; and EMI’s duration extended to 15 years. 2️⃣ Incentivise software investments, not just physical infrastructure. In a digital economy, software, not machinery, increasingly drives productivity and innovation. 3️⃣ Eliminate cross-border friction for startups. Most companies are born global and to scale they need policies that reflect that. Simplify startup visas, ensure mutual recognition of stock option regimes, and avoid penalising employees who move internationally. More in The Times (link in comments).