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> If there was a time to have options at a growing, revenue generating startup it’s today. AirBnB, DoorDash, etc. have been giving RSU's, not options, for year
by lostdog 6y ago
> If there was a time to have options at a growing, revenue generating startup it’s today.
AirBnB, DoorDash, etc. have been giving RSU's, not options, for years. RSU's are still worthless without an exit, but stock options have the major problem that you can wind up with negative value, or even extremely negative value. RSU's at least have a floor of zero.
- dilyevsky 6y agoThat’s only if you exercise before stock is liquid (pre-ipo). Nowadays it’s more common to have long exercise windows that avoid this problem
- edoceo 6y agoThat window would need to be many years. I've never seen longer than 18 months - and that option is only for "blessed" employees
- dilyevsky 6y agoIt’s becoming more common to grant 7-10 year window after certain tenure (like two years) at least among yc companies. I’ve also seen window extended per year of tenure
- taway1871 6y agoUnless you have to leave because 1. You cant afford to be on a "startup salary" anymore 2. Any number of reasons 3. You are being bullied 4. You are being sexually harrassed Regardless why, if you leave, you are forced to exercise in 3mo. Then, if you take the deal, you usually end up with negative value.
- dilyevsky 6y agoShould probably read the post in full before replying