The "how we guesstimate" box didn't mention preferred shares, but it looks like the $0 for low exits covers that. Of course, there's probably also "participati

The "how we guesstimate" box didn't mention preferred shares, but it looks like the $0 for low exits covers that. Of course, there's probably also "participating preferred shares." I don't think it's possible to really understand that without putting on a blue pinstripe suit and bringing your $700/hr lawyer to the meeting. tl;dr it's like the Blues Brothers' rubber biscuit. "You Go Hungry Baaaow Baaaow Baaaow." Don't forget: when you work for stock options / restricted stock / equity , you are an investor in the company. You buy your investment with your scarcest resource, your time. (The VCs buy their investments with a resource that is NOT scarce for them, money.) Smart investors ask questions. Honest founders answer them clearly. This web site might be a really good starting place for your questions. If the founders balk at your questions, don't invest. Seriously.