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Having a 10 year exercise window on options helps quite a bit. In most cases there will either be a liquidity event within 10 years or (for companies that are s
by jartelt 7y ago
Having a 10 year exercise window on options helps quite a bit. In most cases there will either be a liquidity event within 10 years or (for companies that are successful but stay private longer than 10 years) the company will have multiple huge fundraising rounds and can allow early employees to cash out some shares in a secondary round.
To be fair the CEO should either eventually push for a liquidity event or should be open to allowing employees to sell shares on the secondary market.
- ericd 7y agoYeah, I think long dated options plus regular internal tender offers help a lot. I need to look more into the implications of long dating options. Allowing sales on the secondary markets can help, but the interest/liquidity on those is super heavily concentrated in the household names, so if you're working at a $X00M startup, it tends not to work so well, even if the company is nominally friendly toward it.