4 ms·

Not earning money on options when the business isn't successful isn't getting screwed. That's just life.

by harryh 10y ago

hesdeadjim 10y ago
I have to disagree. Investors risk money, employees with options risk their lost income potential and much of their time.
- harryh 10y ago
  And the terms of those risks are determined based on the leverage of the various parties at the time they join the venture. You can start a company and raise money by selling common stock instead of preferred, but in return investors are going to want a much greater share of the company than they otherwise would. That's generally a bad deal for employees. You can say that it's unfair that deals generally work out they way they do, but that's not really any different from saying that it's unfair that your salary is 100k (or whatever) instead of 200k. Welcome to a market economy. Prices are negotiated based on supply and demand.
  - st3v3r 10y ago
    No. None of this is an excuse for getting fucked.
    - harryh 10y ago
      No? What do you mean no? To which part? You don't think what I said is an accurate description of how the world works? When you fail that doesn't mean you got fucked. It just means you've failed. As I said, that's life.
st3v3r 10y ago
But the business got bought. That's not being not successful.
- harryh 10y ago
  If a business gets bought for less than the capital invested, it's not a success.
  - st3v3r 10y ago
    It's not a failure. And I'd say those who poured their effort into the company should be entitled to some part of the purchase price, more so than people who's only contribution was money.
    - harryh 10y ago
      You'd consider turning a $1000 investment into a company worth $500 a success? OK, sure. You can have whatever opinion you want, but you're gonna have a hard time finding other people who see the world the same way you do.
- icedchai 10y ago
  Generally, if that happens, it got "bought" for less than was invested. That's a rather mediocre outcome.

Not earning money on options when the business isn't successful isn't getting screwed. That's just life.

by harryh 10y ago

Not earning money on options when the business isn't successful isn't getting screwed. That's just life.

I have to disagree. Investors risk money, employees with options risk their lost income potential and much of their time.

harryh 10y ago
And the terms of those risks are determined based on the leverage of the various parties at the time they join the venture. You can start a company and raise money by selling common stock instead of preferred, but in return investors are going to want a much greater share of the company than they otherwise would. That's generally a bad deal for employees. You can say that it's unfair that deals generally work out they way they do, but that's not really any different from saying that it's unfair that your salary is 100k (or whatever) instead of 200k. Welcome to a market economy. Prices are negotiated based on supply and demand.
- st3v3r 10y ago
  No. None of this is an excuse for getting fucked.
  - harryh 10y ago
    No? What do you mean no? To which part? You don't think what I said is an accurate description of how the world works? When you fail that doesn't mean you got fucked. It just means you've failed. As I said, that's life.

st3v3r 10y ago

But the business got bought. That's not being not successful.

harryh 10y ago
If a business gets bought for less than the capital invested, it's not a success.
- st3v3r 10y ago
  It's not a failure. And I'd say those who poured their effort into the company should be entitled to some part of the purchase price, more so than people who's only contribution was money.
  - harryh 10y ago
    You'd consider turning a $1000 investment into a company worth $500 a success? OK, sure. You can have whatever opinion you want, but you're gonna have a hard time finding other people who see the world the same way you do.
icedchai 10y ago
Generally, if that happens, it got "bought" for less than was invested. That's a rather mediocre outcome.