A Oxygea, Corporate Venture Capital (CVC) vehicle with US$150 million to invest in startups focused on sustainability and digital transformation, which has a unique operation in Corporate Venture Capital and Venture Building, also presents an unprecedented model in the corporate context, created by the fund to foster its culture: The Token-based Long-Term Incentive Program.
The initiative creates an investment portfolio accessible to employees to share value creation, which is the result of investments that the fund makes in startups, such as some practices more common to Venture Capital players.In addition to monthly remuneration and benefits, the corporate team of Oxygea also has access to variable remuneration, converted into a variable remuneration PLR (Income and Results Participation) based on business and individual results and Tokens allocated proportionally to the size of the investments made by Oxygea.
“Esse model was created to attract to our team people with an entrepreneurial profile, share with the participants the success and value creation of Oxygea with the invested startups, aligning interests and risks through a win/win mechanism; lose/lose. In this way, we stimulate the appetite for investments, agility in decision making and diligence with the capital available to invest”, explains Head of People, Rafaela Marques.
To exemplify in practice, suppose that an employee who receives annually R$10 thousand in variable remuneration, can choose to invest certain % of this amount in the ILP model (Long Term Investment) via Tokens. If the option is 20%, R$2 thousand are destined to the ILP model (it can multiply or not, according to the success of investments (R$8 thousand remaining are received via PLR, or ICC (Short Term Investment) indicated to validate the pre-time leadership Tokygea, the membership is a percentage of the program 0 to reach the criteria to be committed to the participation of the program.
As well as the fund's investment mechanisms, Oxygea's Token program came about after a series of Benchmarkings made during the vehicle's design, which mapped critical success factors and also patterns among those who were unsuccessful in the CVC market, which, according to Artur Faria, CEO of Oxygea, was key to realizing that even operating a Corporate Venture Capital, a certain level of independence was needed to make the investment operation more competitive:
“We observed models that ended up losing flexibility and competitiveness by the direct connection with parent-company, facing dilemmas in the alignment of incentives for risk taking. Our Token model is today a great differential in the CVC market, where most still use the same remuneration format as their mother ‡nave of‘, highlights the CEO of Oxygea.
The proposal of the Tokens is also an alternative to other forms of remuneration that were discarded during the study with benchmarks, such as the formation of companies, stock options, shares and others. The model used, which is an unprecedented creation was co-built to many hands by Oxygea with its parent company, Braskem, and with the partner startup Distu, expert in the theme, involving the areas of People, Legal, Financial and Portfolio, also counting on the opening and contributions by the Advisory Board of the fund. This project was a finalist of the Think Work Innovations Award 2024, Benefits and Competition in the category‘
