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🇪🇺 Europe · EuropeVSOP (Virtual Stock Option Plan)
Also called: virtual stock option plan, virtual shares (Germany)
In one line
The most common German startup equity scheme, giving employees a contractual cash right that mirrors share value — not real shares.
In plain English
Because issuing real shares in a German GmbH is costly and notarised, most startups use VSOPs: a contract paying you the value you'd have gained from shares, in cash, at an exit. You never join the cap table.
If you were explaining it to a 5-year-old
Instead of a real toy, the German club promises: 'we'll pay you the coins your toy would have earned, when we sell the club.'
Why it matters when you sell
VSOPs usually can't be sold in a secondary — they're a contract that pays out only at an exit, so your liquidity is tied to the company's.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: Gesetze im Internet (Germany). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.