4 ms·

Can anyone please explain to me what he means when he says that 'most' stock options become worthless even when the startup is sold for a hefty profit? I am qui

• tibbon 16y ago
  The terms for the options that most rank-and-file employees get are rarely great. After the interest (which can be high), preference (sometimes double preference) and other terms it is often likely that your 0.2% of the company really isn't worth anything much. There's also the chance that you didn't have acceleration in there, and you weren't fully vested by the time the sale was made.
• minalecs 16y ago
  I think stock dilution, is a big concern. With each round of funding, and the more stock they issue, this makes your stock worse less unless they can guarantee it. Im not an expert ( please someone expand), but my simple understanding , is something like lets say you get options to buy 10 stock out of 100 total shares, thats a lot. But then next round of funding they issue more stock and now you still have the option to buy 10, but there are 1000 outstanding now. What you had before is worth a lot less.