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With regard to equity, I wouldn’t join a startup unless it’s cheap for me to buy the options. If you get your cliff, and it costs 50k to buy your options, you
by aey 8y ago
With regard to equity, I wouldn’t join a startup unless it’s cheap for me to buy the options. If you get your cliff, and it costs 50k to buy your options, you are sol. You options are to throw away your equity, or be stuck at a shitty job.
Whether it’s worth it “to get rich”, is kind of a bs argument. If the opportunity exists to be a founder go for it, if not take the next best possible option.
- jiveturkey 8y agoI think this is unnecessarily cynical. A third option is to keep plugging away at a great job in a great company. If at 1 year, you find yourself at a shitty job and/or shitty company, leave ... regardless of what the options cost. And who cares if they are cheap then. Shitty company = going nowhere. Any money spent exercising is money thrown away, which is even worse than walking away from it. Your decision point around the cost of those options seems poorly thought out, besides being a victim of a false dichotomy.
- walshemj 8y agoSo you can do the sell some stock to buy the rest thing Nil Paid I think its called. And tax wise it can work out better as you don't pay income tax of the shares sold to buy the others - this is scenario dependant.