It seems like net share settlement for employee option exercise would benefit early employees considerably without really costing the issuing company much. For

It seems like net share settlement for employee option exercise would benefit early employees considerably without really costing the issuing company much. For example, if I have options to purchase 100 shares at $1 each and current market value is $2, instead of me having to pay $100 to exercise I can pay in shares, so I instead end up with 50 shares of stock ($200 current value minus $100 to exercise, so I get net $100 in value, $100 / $2 = 50 shares). This is pretty common in the convertible bond world. When I first learned that employees had to write a check to exercise that sounded crazy to me. I’m curious why net share settlement doesn’t seem to really exist in the startup world. Maybe due to the difficulty in determining current market price?