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The problem is that the relationship between your outcome as a holder of ISOs and the outcome for the company as a whole is pretty opaque. You have no idea what
by thinkharderdev 5y ago
The problem is that the relationship between your outcome as a holder of ISOs and the outcome for the company as a whole is pretty opaque. You have no idea what the companies cap table looks like, what sort of liquidity preference the VCs have and what are the various ways in which you can be diluted. If you want to offer people ISOs as a bonus/inventive (i.e. pay a market salary and throw in options as an extra) then great. But if you are asking people to trade off salary for a financial instrument that can't possibly be valued with the information available to then it is kind of shitty to be upset when someone gives them an implicit value of 0.
- TameAntelope 5y agoWhat do you mean, "You have no idea what the company's cap table looks like"? Ask! I mean yeah, if you don't know those things sure, it becomes a lot harder to understand, but I've been given that information when I've asked so far, and I would pass that information along now as well.