4 ms·
These are all great questions. However, it is important to understand why you're asking some of these questions. For example: - Runway left and when was the la
by Yabood 8y ago
These are all great questions. However, it is important to understand why you're asking some of these questions. For example:
- Runway left and when was the last raise: are important because you'd like to know when the company will run out of cash, but more importantly perhaps is to understand whether there's a dilution hit on the horizon so you can negotiate accordingly.
- Equity and the vesting schedule details..: if a startup company doesn't answer or provide you these details when you ask, then you might want to reconsider joining them. Getting 10K or 20K options might seem like a lot, but without knowing how many shares are authorized and issued you don't know how much equity you're really getting.
- ThrustVectoring 8y agoMost early-stage startup employees should price the equity grant at $0. If everything works out great, it'll be a lot of money you can't do anything with about 5 years from now and often only turn into actual cash a decade or more out. In the meantime, your personal finances has to work based on the cash salary you receive, without any raises (because "raises" for a start-up are achieved through equity grants becoming more valuable). Yes, the grant has a positive expected value. This value is too uncertain and too illiquid to significantly affect your planning, which ought to care a lot more about what the maximin strategy suggests for your course of action.