It's difficult to grant privately held equity that's taxable when it vests since you can't sell it to cover the taxes. Also if the company doesn't go anywhere,

It's difficult to grant privately held equity that's taxable when it vests since you can't sell it to cover the taxes. Also if the company doesn't go anywhere, you paid a lot of taxes for nothing, and it can be difficult to even claim a loss if the company still limps along.