How EquityList's Advisory Services Powered Protecte Technologies' ESOP Success

Company background

A 100% Indian cybersecurity company, Protecte Technologies delivers innovative strategies and tools to mitigate cyber threats and ensure robust protection of critical assets.

Protecte Technologies was founded in September 2023 by Col. Subhajeet Naha and Lt. Col. Warun Nayar. They were subsequently joined by Col. KPM Das as Chief Strategy Officer.

The company has achieved significant milestones since its inception:

• Instant client acquisitions from the defence sector
• Successfully launched educational platform for cybersecurity certification, also known as Protecte Academy
• Development of India's first 100% indigenous EDR product
• International expansion with Dubai operations
• Rapid team growth from 5 to 28 employees

The leadership team brings extensive experience from both military and corporate sectors, with backgrounds including senior roles at Cisco and major European operations.

The challenge

An experienced entrepreneur who has previously founded multiple startups, CEO Warun Nayar recognised the critical importance of equity management early in the company's lifecycle.

He identified several key challenges that required professional ESOP advisory services, including the need to cut through conflicting guidance and find a clear, compliant path forward:

1. Strategic focus dilution‍

The leadership team needed to concentrate on their actual business which is cybersecurity, rather than getting distracted by complex equity administration tasks.

"We've got to focus on what is core to us. Our core competence is cybersecurity. I don't want to be looking around left and right, trying to figure out if my employees are happy with their equity shares or if the grant letters have even gone out in the first place."

2. Talent acquisition and retention‍

The company needed to attract top cybersecurity talent in a competitive market where equity participation is a key differentiator.

"As a startup, you don't have such capital that allows you to give out top compensation. You’re selling a dream, and more than selling the dream, you’re offering ownership of that dream and hope that employees align themselves to that shared vision."

3. Administrative complexity‍

With rapid growth from 5 to 28 employees, the administrative burden of equity management was becoming increasingly complex, requiring specialized expertise the internal team lacked.

4. Compliance requirements‍

Given the sensitive nature of cybersecurity work, particularly with defense sector clients, maintaining proper equity documentation and compliance was critical.

The solution

Protecte Technologies chose EquityList's ESOP advisory services to address these challenges. The decision was driven by several factors that aligned with their needs for professional guidance and comprehensive support.

The advisory team provided trust and expertise in handling this critical business function. Since equity represents such a fundamental component of startup operations, proper administration was essential to avoid employee dissatisfaction.

"The most important thing is trust. You're giving away a very key component, and if the administration is not done well, then the very purpose of giving that equity fails itself."

EquityList's advisory approach offered flexibility that matched the company's growth timeline, accommodating their readiness to implement without pressure.

"We didn’t want to roll out the ESOP scheme immediately. I liked the flexibility the team offered, saying “Okay, whenever you're ready for it, we are good to go then.” "

The cultural alignment between the advisory team and Protecte Technologies created a strong foundation for collaboration.

"What I really liked was that the EquityList team were very open, creative and willing to understand and then try to accommodate. There is a cultural connection here. I always believe the cultural connection happens first, then the rest is easy."

The advisory solution included complete ESOP structuring, policy development, grant letters, resolutions, and ongoing support guidance, including:

• Breaking down the ESOP complexity: Our team meticulously explained the nuances of the ESOP and elucidated how its implementation could serve as a catalyst for the company’s growth and long-term alignment of interests among stakeholders.
  
  
• Explaining impact of equity dilution: Furthermore, we extended our analytical expertise by assisting the founders in determining the optimal level of equity dilution. We illustrated the potential impact on both co-founders, ensuring that the scheme would be equitable and sustainable. 

Implementation process

The ESOP advisory engagement followed a strategic, phased approach designed to build a comprehensive framework:

1. Strategic planning: Early engagement to establish the ESOP framework before immediate implementation needs
2. Policy development: Comprehensive ESOP policy creation with extensive consultation and education
3. Documentation: Complete legal documentation including grant letters and board resolutions
4. Knowledge transfer: Educational support to ensure internal team understanding
5. Approval process: Guidance through securing all necessary approvals for ESOP pool creation
6. Implementation readiness: Preparing the framework for deployment as the team continues to scale

The advisory process was designed to be non-disruptive to daily operations, allowing the company to prepare thoroughly for implementation.

Results and impact

EqyuityList’s ESOP advisory engagement delivered significant value across multiple business dimensions:

1. Operational efficiency‍

The company successfully established a professional framework for equity management, allowing leadership to focus on core business activities and international expansion.

2. Strategic positioning‍

With a well-structured ESOP framework in place, Protecte Technologies is positioned to continue attracting top talent as they scale operations.

3. Risk mitigation‍

Professional ESOP advisory services ensure compliance and reduce administrative risks associated with rapid growth.

4. Cultural impact‍

The ESOP framework supports Protecte’s people-centric values and long-term vision for employee ownership.

The overall advisory experience received strong customer satisfaction ratings from the leadership team.

"From the perspective of a net promoter score from a customer, I have no hesitation in saying that I would rate EquityList’s advisory services 9 or 10 out of 10."

Key takeaways

1. Plan early, execute when ready

ESOP planning should begin well before immediate implementation needs arise, allowing companies to establish proper frameworks without pressure.

"This is something so fundamental to the DNA of what we create as startups that you need to plan well in advance and take care of it. Then have someone who's trusted handle it and you can keep that aside and then move on."

2. Focus on core competencies‍

Engaging professional ESOP advisory services allows startups to concentrate resources on their primary business objectives while ensuring critical equity functions are handled properly.

3. Trust and cultural fit matter‍

The success of the advisory relationship was built on trust, flexibility, and cultural alignment between both Protecte Technologies and EquityList, showing the importance of advisor selection beyond just technical capabilities.

4. Proactive approach pays off‍

By addressing ESOP structuring before it became urgent, Protecte Technologies avoided potential disruptions and positioned themselves for sustained growth.