3 ms·
Correct me if I'm wrong, please, but since the equity is all options, doesn't that imply that they're making it easier for people to give them money? Yes, sure
by mabbo 4y ago
Correct me if I'm wrong, please, but since the equity is all options, doesn't that imply that they're making it easier for people to give them money?
Yes, sure, they have to dilute the company a bit by creating more stocks for the people buying it, but if your company is in enough trouble that you're laying off 1 in 6 employees, it seems financially wise to effectively be doing many small rounds of fundraising this way. It extends your runway some small amount.
- ftufek 4y agoOnly if you exercise the options, you won't exercise the options if it's not profitable to you.
- mabbo 4y agoAh, that's a good point. It's sort of the opposite: now the option holder can wait longer to decide if this is a worthwhile investment, vs "You have 30 days to exercise this or you get nothing".
- alecbz 4y agoDon't most options expire a handful of months after leaving the company?
- mepiethree 4y agoThey extended the option exercise period to 5 years
- bagels 4y agoThat is unusual and I wish more companies would just offer that from the start.
- ajg36 4y agoThe ability to extend that period isn't always up to the option-granting company; while it is possible for non-qualified stock options (NSOs), incentive stock options (ISOs) must be exercised within 90 days of termination of employment, by law.
- deleted 4y ago[deleted]