Equity options can be a crucial tool for startups for several reasons: 1. Attracting Talent: Startups often cannot compete with established companies in terms of salary. Offering equity options allows startups to attract top talent by promising a share in the future success of the company. 2. Aligning Interests: Equity options align the interests of employees and founders with the overall success of the company. When employees own a part of the company, they are more motivated to work towards its growth. 3. Conserving Cash: Startups often operate on tight budgets. Offering equity options as part of compensation helps conserve cash for other critical business needs.