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Honestly that's a red flag for the company itself if senior management is not willing to buy more shares whenever possible. Reducing your exposure in the compa
by Galanwe 6y ago
Honestly that's a red flag for the company itself if senior management is not willing to buy more shares whenever possible.
Reducing your exposure in the company is an employee mindset, not an entrepreneur one.
One of the very first question potential clients ask us, is "how much is the management committed?", and by that they mean, how much of their own money did they have invested in the company.
- hkmurakami 6y agoSenior Management may not have the liquidity. The institutionals passing on their ROFR would smell bad, but may still happen due to their Capital constraints.
- m00x 6y agoA lot of companies want employees to own a part of the pie so they'll feel personally engaged in the future of the company. I don't think it's a red flag at all. Most companies will set away 5-10% of their stock value to be owned by employees. The only reason they'd buy it back from you is to give it to others.
- sk5t 6y agoThis seems like a really odd take to me. Senior management at a startup with illiquid shares is going to buy those employees' options with what? Do you imagine the CEO digging into the ol' pocket for $200k to cover an early employee's appreciated equity? Much more of a red flag if the CEO has that kind of cash sitting around from taking something off the table early.