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- 409a valuation to know the current strike price of the shares - total outstanding fully diluted shares to know the total shares available You can ask this,

- 409a valuation to know the current strike price of the shares - total outstanding fully diluted shares to know the total shares available You can ask this, but has anyone actually had success getting an answer to these questions? Every time I've asked questions like these (which are generally considered sensitive financial information) I've gotten laughed at.

hellcow 5y ago
My company has always provided these. Applicants are obviously going to find out the current strike price as soon as their options are granted, so hiding that seems particularly strange.
majormajor 5y ago
I've gotten answers to both of those (sometimes had them volunteered unprompted). Haven't been offered (or asked for) some of the other ones mentioned, like size of employee-specific pool.
molsongolden 5y ago
Assuming you're through to the offer negotiation stage, the company should be willing to share the most recent valuation, fully diluted share count, and 409(a) val.
908B64B197 5y ago
> Every time I've asked questions like these (which are generally considered sensitive financial information) I've gotten laughed at. That's a red flag that the company you are talking to isn't serious.
icedchai 5y ago
As the second employee at the company, I did get these answers. I also got cap table access.
myrandomcomment 5y ago
Yes. 100% of the time. If they do not answer run away.
brudgers 5y ago
Getting laughter is a tell about the high bit of company culture. People’s mental model of other people largely assumes that other people are about as trustworthy as themselves. Trustworthy people assume other people are trustworthy. Backstabbers assume other people backstab. Don’t misunderstand me, there’s a difficult conversation about stock. A few shares doesn’t give a person a say in how the company is run. It doesn’t make a person a principal. Doesn’t make them a “partner”. Worker bees are still worker bees with shares. Trustworthy people offer shares because it might make you rich. If someone laughs, they don’t think you deserve to be rich.
- silexia 5y ago
  I agree and would never work at a company like this. They are basically asking you to buy in without knowing the price.
- deleted 5y ago
  [deleted]
dharmab 5y ago
When I've been at this stage, I've already signed an NDA for the interview and can be told the relevant info.
nzmsv 5y ago
Interesting to see that people do in fact receive this information. My guess is only the first key hires will be told this and not the rank and file joining after series A, for example. In my experience laughter may be overstating it a bit, but the question is brushed off with an "it's confidential" and you are made to feel slightly stupid for asking. And these weren't fly-by-night operations either, but well-respected startups that went on to do very well.
jiveturkey 5y ago
Interesting. This isn't sensitive information. If you don't get it, you have no way to evaluate the offer. Therefore these are hard pass questions. You must be only finding bottom tier startups, I suppose. Great filter question because it's very easy to just walk away from them without any further consideration.
noptd 5y ago
I have experienced both outcomes and offering to sign an NDA hasn't seemed to make much of a difference. YMMV
danshapiro 5y ago
That's an effort to make their abhorrent behavior seem normal. Don't fall for it. Speaking firsthand, Glowforge will always share fully diluted options and the last 409a valuation. What we do is not uncommon, and IMHO is the only ethical course of action. Note, however, that options are granted by the board, and until they approve the grant, the 409a and hence the strike price may change. For example, if the company got a buyout offer between your conversation and the board action, the board would likely have to order a new 409a before granting. Good luck!
SZJX 5y ago
The replies seem to be diametrically opposed on whether this is to be expected, which is interesting. I wonder if it depends on the country as well, e.g. whether this is a common thing in the US, while there might be some legal concerns for companies operating outside of the US to disclose such information before the candidate signs. Or for example it's too much hassle and uncertainty to fashion out tailor-made NDAs that are valid in the different countries they hire in.

hellcow 5y ago

My company has always provided these. Applicants are obviously going to find out the current strike price as soon as their options are granted, so hiding that seems particularly strange.

majormajor 5y ago

I've gotten answers to both of those (sometimes had them volunteered unprompted). Haven't been offered (or asked for) some of the other ones mentioned, like size of employee-specific pool.

molsongolden 5y ago

Assuming you're through to the offer negotiation stage, the company should be willing to share the most recent valuation, fully diluted share count, and 409(a) val.

908B64B197 5y ago

> Every time I've asked questions like these (which are generally considered sensitive financial information) I've gotten laughed at. That's a red flag that the company you are talking to isn't serious.

icedchai 5y ago

As the second employee at the company, I did get these answers. I also got cap table access.

myrandomcomment 5y ago

Yes. 100% of the time. If they do not answer run away.

brudgers 5y ago

Getting laughter is a tell about the high bit of company culture. People’s mental model of other people largely assumes that other people are about as trustworthy as themselves. Trustworthy people assume other people are trustworthy. Backstabbers assume other people backstab. Don’t misunderstand me, there’s a difficult conversation about stock. A few shares doesn’t give a person a say in how the company is run. It doesn’t make a person a principal. Doesn’t make them a “partner”. Worker bees are still worker bees with shares. Trustworthy people offer shares because it might make you rich. If someone laughs, they don’t think you deserve to be rich.

silexia 5y ago
I agree and would never work at a company like this. They are basically asking you to buy in without knowing the price.
deleted 5y ago
[deleted]

dharmab 5y ago

When I've been at this stage, I've already signed an NDA for the interview and can be told the relevant info.

nzmsv 5y ago

Interesting to see that people do in fact receive this information. My guess is only the first key hires will be told this and not the rank and file joining after series A, for example. In my experience laughter may be overstating it a bit, but the question is brushed off with an "it's confidential" and you are made to feel slightly stupid for asking. And these weren't fly-by-night operations either, but well-respected startups that went on to do very well.

jiveturkey 5y ago

Interesting. This isn't sensitive information. If you don't get it, you have no way to evaluate the offer. Therefore these are hard pass questions. You must be only finding bottom tier startups, I suppose. Great filter question because it's very easy to just walk away from them without any further consideration.

noptd 5y ago

I have experienced both outcomes and offering to sign an NDA hasn't seemed to make much of a difference. YMMV

danshapiro 5y ago

That's an effort to make their abhorrent behavior seem normal. Don't fall for it. Speaking firsthand, Glowforge will always share fully diluted options and the last 409a valuation. What we do is not uncommon, and IMHO is the only ethical course of action. Note, however, that options are granted by the board, and until they approve the grant, the 409a and hence the strike price may change. For example, if the company got a buyout offer between your conversation and the board action, the board would likely have to order a new 409a before granting. Good luck!

SZJX 5y ago

The replies seem to be diametrically opposed on whether this is to be expected, which is interesting. I wonder if it depends on the country as well, e.g. whether this is a common thing in the US, while there might be some legal concerns for companies operating outside of the US to disclose such information before the candidate signs. Or for example it's too much hassle and uncertainty to fashion out tailor-made NDAs that are valid in the different countries they hire in.