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> Companies get their shiny unicorn valuation (which helps with recruiting, in addition to being the vanity metric du jour) Only losers appear to be employees
by akg_67 11y ago
> Companies get their shiny unicorn valuation (which helps with recruiting, in addition to being the vanity metric du jour)
Only losers appear to be employees in the end.
> Additionally, issuance of participating preferred stock is on the rise, having been issued in 5 percent of deals in the Fenwick & West study.
Lesson: don't join a startup unless you get preferred stock. Value of common stock awarded to an employee = $0.00 x millions of common stock awarded.
> This “double-dip” was common following the dot-com bubble, but had disappeared in the recent bull-run in VC.
Looks like shenanigans of dot-com bubble are back. Who says current market doesn't look like dot-com bubble? They should quit smoking whatever they are smoking.
- JonFish85 11y ago>Lesson: don't join a startup unless you get preferred stock. Who gives out preferred stock to employees? I don't even know that founders get preferred stock, generally. If any employee asked for preferred stock at any company I've ever worked for, you'd immediately end the conversation, whether you were an engineer or C-level. All stock grants have to be approved by the board, and I don't know of any board that's going to bend on "hey, we really wanted this engineer, we had to give her preferred shares".
- x0x0 11y agoThe tax implications of preferred stock / preferred RSUs I think would make this worse for employees than options.