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It also seems to ignore strike price and the scenario of an acquisition where only the VC and founders get paid.
by rwilson4 7y ago
It also seems to ignore strike price and the scenario of an acquisition where only the VC and founders get paid.
- jefftk 7y agoFootnote 1: "You may be asking yourself, 'what about the strike price'? The answer is that, because almost all of the expected value of the options comes from a very small fraction of scenarios in which you exercise them, the strike price doesn’t contribute very much to the expected value."