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> Another interesting idea to reduce complexity for employees came from Brian Neider at Lead Edge Capital, who suggested a single question for employees to ask
by abalone 10y ago
> Another interesting idea to reduce complexity for employees came from Brian Neider at Lead Edge Capital, who suggested a single question for employees to ask management: “Can you please let me know how much money I’d make from my options if the company were to sell or IPO for $100m, 200m, 300m, 400m, etc?”
Is that really the best single question to ask? It's actually a complex question as it depends on subsequent funding rounds and terms such as dilution and liquidation prefs. You should not need to run a simulator to figure out if you're getting a decent grant.
If the goal is to compare grant sizes to other offers, how about a simple objective metric like percentage ownership? That will give you a general sense of how sizable a chunk you are getting. It will of course vary by growth stage, but within stages it's closer to apples-to-apples than anything I can think of (even FMV).