3 ms·

83B is for grants of restricted stock, not for stock options.

• scurvy 10y ago
  Understand that but as a founder, why would you give yourself options over stock? It's your company. That makes no sense. You need to pay in capital in some form.
  • dkfmn 10y ago
    The key is that you need to align incentives for employees, investors, etc by demonstrating a long-term commitment to the company. Lots of more nuanced discussions of this topic exist but here's one I have at hand: http://startupclass.samaltman.com/courses/lec18/ http://startupclass.samaltman.com/courses/lec18/
  • brianfitz 10y ago
    They likely were giving her additional grants later in the life of the company upon reaching certain milestones to make up for her dilution at a strike price that required millions of dollars to exercise. You can get away with founder stock very early on, but at some point, it becomes untenable as the value of the company grows.