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Are you really suggesting that it's rare for employees to get hosed on options because they don't understand the terms in their contract? Because that's about
by wheels 15y ago
Are you really suggesting that it's rare for employees to get hosed on options because they don't understand the terms in their contract? Because that's about the closest parallel I can think of. Net points sound like the showbiz equivalent of liquidation preferences. "Oh, no, you don't actually get a percentage of the $50 million sale because there are these investors that have a different kind of stock that says that they get at least a 5x return before you get anything..."
- rdl 15y agoTech contracts are pretty transparent by comparison. Aside from value of options (which most people consider to be $0-$20k for the average $100-150k/yr job), all the other benefits of working in tech are straightforward and employee-favorable. In an early stage startup, you're not likely to see worse than 2x participating, and 1x non is the standard for Series A financings now.