4 ms·
None. I was a key share holder with >5% in options. I was diluted to 2% over multiple seed financing rounds. Additional grants were issued to compensate. There
by icedchai 4y ago
None. I was a key share holder with >5% in options. I was diluted to 2% over multiple seed financing rounds. Additional grants were issued to compensate. There were a couple of down rounds. Options were repriced. The company was later "acquired" for peanuts in a fire sale (pennies on the dollar) and none of the early investors received anything.
My advice: don't over value your equity compensation.
- cma 4y agoGetting diluted for fundraising rounds makes sense. Where it gets shady is getting diluted from additional equity grants to existing founders that are majority shareholders, disguised as e.g. CEO compensation. Or stuff like the founder's kid gets a large new equity grant for joining to create the company esports team (in a company with nothing to do with esports).
- roflyear 4y agoFounders kid, wife, second cousin stuff is great. So fun to work for those companies.