Rakettitiede provides its rocket scientists with the opportunity to become owners of the company if they so choose. But what does the average Joe or Jane get out of shareholding and having a foot in two camps?

When doing business is based on expertise and the work itself is the thing that creates value, it’s difficult to justify why only the bigwigs should assume responsibility for the future of the company or cash in all the money.

The ownership of Rakettitiede is widely distributed thanks to private offerings to the employees: around 35 percent of the staff have shuttle shares in their bank vaults or desk drawers. Shareholding fosters a sense of togetherness, motivates employees to act in the best interest of the mother ship, and acts as a reward for a job well done (in addition to salary, ofc) – and the work done by a colleague.

Around 35 percent of the staff have shuttle shares in their bank vaults or desk drawers.

Share issues are part of Rocket’s effort to build a people-centered culture and ways of working.

“One doesn’t need to be an owner to have an influence here. The number of shares does not dictate who has smart opinions, as everyone does. However, we want to offer everyone the opportunity to own a part of the company and contribute to its development and decision-making in this way,' says Rakettitiede's CEO Juha Huttunen.

“One doesn’t need to be an owner to have an influence here.” - Juha, Beloved Leader

Work input has an effect on the investment

Each Rakettitiede employee has the opportunity to buy themselves a piece of the Rocket in an annual private placement. The first issue was conducted in 2017 when the Rocket was a young and energetic 6-year-old. About half of the staff joined in.

There were several reasons for the getting in on the fun. “The founders had been actively begging me to join, and I got tired of listening to them,” says one rocket scientist, who shall remain anonymous, and continues: “I mean, it is a safe and hassle-free investment with a fairly good yield expectation. And the investment doesn’t require any extra work on my part if I’m looking for moderate growth.”

Another rocket-scientist-cum-investor tells us that they were one of the first people to take part in the issue because they wanted to gain better visibility over the company’s decision making. “Being a shareholder means that I can participate in discussions about the direction in which the company is going more easily. It’s given me more insight into things that are on the agenda at any given time.”

“It’s given me more insight into things that are on the agenda at any given time.” - anonymous Rocket Scientist

*Ed thinks that it feels natural to own a small part of the company, when you truly trust the employees, the leadership and the business.*

A large number of employees keep a keen eye on company news anyway, but ownership increases people’s interest in the company’s expenses and strategy implementation. Shareholding increases employees’ engagement with the company and makes them genuinely interested in knowing where their company is headed. What’s more, the work the employees put into the company affects the successfulness of their investment.

“Work becomes more meaningful when you’re part of the company’s operations as an investor. It makes you feel like you’re working in your ‘own company’,” says one Rocket Scientist who’s been a shareholder for about five years.

“It makes you feel like you’re working in your ‘own company’.” - anonymous Rocket Scientist

The latest share issue was organized in August 2024. As a result of the issue, Rakettitiede gained seven new minority shareholders, and two existing minority shareholders expanded their ownership of the company.

“When I truly trust both the employees and leadership of Rakettitiede, as well as its business, it feels natural to own a small part of the company. At the same time, I get the opportunity to vote on the company’s decisions. However, Rakettitiede’s way of working is already highly transparent, and decisions are generally made collectively rather than dictated from the top,” says Rocket Scientist Edvard Majakari, who became a shareholder through the employee share issue.

Wedlock with the Rocket requires a marriage dowry – but we’ve got you covered

The doors of IT companies are known to revolve fast, so employers really want to hold on to their talents. Employee issue provides one additional way of increasing the employees commitment to the company alongside other motivating factors such as the meaningfulness of work, a healthy work culture and a good salary.

*Juha thinks it’s important to offer everyone the opportunity to own a part of the company and contribute to its development and decision-making in this way.*

Back in the day, the command bridge of the Rocket considered other types of balls and chains and rewards, but incentives like bonus systems were thought to bring nothing new to the table – after all, rocket scientists already enjoy some of the top salaries in the field. Dividing people into two separate and unequal groups by setting up a holding company or a cooperative was something the company wanted to avoid as well. The solution was direct ownership.

“Having your job linked to ownership makes it psychologically more difficult to change jobs. This is a known and intended side effect of the system,” says one long-time shareholder and Rocket Scientist.

Our ownership base is also one of the FAQs that come up during our sales situations: our clients find it interesting, since it contributes to our culture and the commitment level of our specialists.

Of course, the commitment doesn’t need to last till death do us part. Even though you enter into wedlock with the firm (and make a prenuptial agreement), the marriage can still end in a divorce. In that case, Rakettitiede will buy back the shares.

The minimum purchase you have to make is so substantial that no one is going to enter into the shareholders’ agreement without at least some planning. Since the sizes of people’s NFT art collections and stashes of mattress money tend to vary, anyone wanting to HODL is offered the opportunity to buy Rocket shares by borrowing money from the company’s treasury.

The reasonable loan terms of Rakettitiede have proven to be an excellent incentive. As one anonymous venture capitalist put it: “The affordable loan offered by the company is a benefit that makes the investment decision a lot easier.”

Looking for a safe investment? Invest in rocket shares or a racehorse

One of our fairly recent owners-cum-rocket scientists mentions that motivation and commitment were the main reasons for signing the shareholder agreement. They also stress the financial benefits: “The company provides an interesting investment opportunity, since there’s nothing quite comparable available on the free market. If the company thrives, you get the opportunity to earn some moderately taxed capital income.”

“The company provides an interesting investment opportunity, since there’s nothing quite comparable available on the free market.” - anonymous Rocket Scientist

The rocket scientist points out that buying shares from an unlisted consulting firm may sound like a bad deal on paper: “In principle, the shares of an unlisted company are a highly illiquid investment, meaning that the money can’t be easily exchanged for cash when you need it. Moreover, their value formation is different from trading on the stock market, so there’s a lot of uncertainty about the valuation of the share. In addition, the shareholders’ agreement may also limit the shareholder’s ability to participate in other business activities while holding the shares.”

Another Rocket Scientist and long-time moneymaker thinks along the same lines: “This isn’t the most straightforward investment out there, because the way the shares are valued is complicated and it can be difficult to get rid of your stock in a situation where you need some money, for example. I still feel like it’s a pretty safe investment, though.”

The turnover of a consultancy depends on the number of productive consultants it has. Rakettitiede currently has about 60 employees, and its current focus dictates that it’s not going to mushroom into a company of hundreds of people. You can’t simultaneously expect to experience a huge increase in value and to remain the size of a company that you would still like to work for.

The only thing missing is whisky

Juha believes that the IT industry is undergoing a broader shift towards a more human-centered approach, with top talent seeking opportunities where they can truly make an impact: “The industry is increasingly moving in a direction where top professionals no longer want to be just cogs in the machine, but rather desire meaningful work and the opportunity to develop the entire work community.”

Position size varies from person to person, but every shareholder gets heard on an equal footing. Our shareholder meetings try to avoid needless voting – gaining a seat at the table is what shareholding is all about.

Despite our best efforts, our meeting arrangements have still managed to attract some criticism: “I’ve attended the shareholder meetings on the promise of expensive whisky but haven’t seen any yet, not even once!”

Stocking up on shares – many rocket scientists are also shareholders