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Yes. First of all, they'll probably just tell you how many shares you get. So, you don't even know what percentage of the total you have! But even if they did
by cballard 11y ago
Yes.
First of all, they'll probably just tell you how many shares you get. So, you don't even know what percentage of the total you have! But even if they did tell you, they won't show you the cap table, so there's no way to even evaluate the worth, since you can't see how much the investors are going to be paid out first. And even if you did know that, the board can just print more shares and make yours irrelevant anyways, so you still can't tell what they're worth.
So, assume they're worthless.
- tptacek 11y agoThis used to be a pretty common story, but I haven't heard it in awhile. Don't accept offers that don't give you enough information to value your shares, unless equity isn't a significant part of your compensation.
- x0x0 11y agoIt happened to me early this year, and they were super-upset when I turned them down. An A-round startup (with investment from a16z!) that wouldn't share the denominator in the options package... I guess it takes all types. Funny enough, they're still hiring for the role.