Stock options are often for common stock and if its in a VC backed company, the VC's will invest in the form of preffered equity which is like permanent debt wi

Stock options are often for common stock and if its in a VC backed company, the VC's will invest in the form of preffered equity which is like permanent debt with no interest payments. If the company is sold for 20% less than the last round, the VCs will be paid first and the common equity gets what is left over which could be 20%, 50%, 100% lower than what you thought you might get. So be careful....