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About 2, do you have any thoughts about how equity should play into the H1-B system? Often times people working for early stage startups are getting paid far le
by jon_richards 10y ago
About 2, do you have any thoughts about how equity should play into the H1-B system? Often times people working for early stage startups are getting paid far less than even "prevailing wage" because their equity is valued at next to nothing.
- prasadjoglekar 10y agoLeaving a loophole will only invite more abuse. If the equity is worth $0 (which it is for all illiquid startups big and small), then it shouldn't count for anything.
- poof131 10y agoThe 409A valuation should be used.[1] Definitely not the fundraising valuation for preferred shares. Employees should use the 409A too when trying to evaluate competing offers. While early 409A evaluations can be a bit of a swag they are much more reasonable then fundraising valuations. Example, left a seed stage startup where the founder liked to brag about the $10 million dollar valuation (had a convertible note with a $10 million cap so not really a valuation). The 409A was at $2 million, which was much more reasonable for the progress, potential, and risk. [1] https://www.quora.com/What-is-a-409A-valuation https://www.quora.com/What-is-a-409A-valuation