5 ms·
> Someone who is just getting into tech may be allured by a 50k salary and "1 MILLION OPTIONS!!!!" This reminds me of a job offer from a startup I interviewed
by xur17 6y ago
> Someone who is just getting into tech may be allured by a 50k salary and "1 MILLION OPTIONS!!!!"
This reminds me of a job offer from a startup I interviewed with that offered me a specific number of options, but wouldn't tell me anything that I could use to value them, effectively forcing me to value them at $0.
- Analemma_ 6y agoYou should always value options at $0 even if they do give you information. Take the probability that the company won't go under, multiplied by how much you'll lose in further dilution rounds, multiplied by the likelihood that you'll get screwed by some other kind of dirty-dealing, and startup equity almost always comes out to be worthless. Work at one anyway if you want the experience, but never kid yourself that your options will amount to anything.
- GauntletWizard 6y agoThe real way to get rich by working at a startup is to advance your career while there - Gain experience and title increases at a startup, where such experience and title increases are easy to get because of the relative lack of competition. Iff you startup makes it big, ask for commensurate raises. Otherwise, leverage that experience into working for a larger company that will pay more.
- alasdair_ 6y ago>You should always value options at $0 even if they do give you information. If the company has meaningful revenue and a solid margin AND they have already paid out to employees in previous liquidity events, it's pretty likely the options have value above zero.
- icedchai 6y agoIf that is the case, you're not working at a startup. You're working at a actual, real, proven business.