3 ms·
So, as a (sometimes) startup employee, how can I identify a setup such that when a major investor makes money off their stock, I too have the option of making m
by RangerScience 9y ago
So, as a (sometimes) startup employee, how can I identify a setup such that when a major investor makes money off their stock, I too have the option of making money off my stock?
I've heard of setups like this, but I don't remember what they're called - something like, you own stock, and when someone sells a percent of their shares, you can sell the percent of your shares at the same rate to the same party (or back to the company? or something?).
What questions SHOULD you ask, and what kinds of answers are you looking for?
- sgs1370 9y agoI think it's a specialist question. All of this assumes you have leverage to get what you ask for. If you are concerned about a company you work for making a lot of money after lots of VC rounds: You would probably have to get warrants, written by someone* who is really smart. If you think the company won't need to do many rounds: just look for stock (if you're in really early, e.g. grant+zero-value-83b election still applies) or options (if you're in after the really early stages of the company). *Find a great accountant who internally has tax lawyers to help you negotiate.
- RangerScience 9y agoI imagine I will use this information somewhere in the "either stock that I can ensure some of the value of, or actually fair market wages". I had a conversation like this that could have benefited from this info not so long ago; I did end up walking away and no-one was happy.