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You could ask, and they'll say "yes" or "no." If you have a question I'd just ask it straight out. I mean, you're at an early stage startup. It's a ton of risk
by mannyv 4y ago
You could ask, and they'll say "yes" or "no."
If you have a question I'd just ask it straight out. I mean, you're at an early stage startup. It's a ton of risk for you, so you should know what you're getting.
But remember, 2% of $0 is still $0.
- bombcar 4y agoAnd even if you get the 2%, you should consider it as $0 when evaluating your options. Almost all startup equity ends up worthless; but the connections you may make could be quite valuable.
- NotYourLawyer 4y agoThe real equity was the friends we made along the way.
- akavi 4y agoY'know, a lot of people say they value it at 0 $, but are oddly hesitant to take me up on my offer to buy it off them for a hundred bucks...
- maratc 4y agoIf we're valuing a thing that will turn out to be $0 with 99% certainty, or $1M with 1% certainty, then "a hundred bucks" is not a good proposal. 1% of $1M and there might be something to talk about.
- bombcar 4y agoOffer to buy it for a hundred and give them a perpetual right to call it back at ten thousand ... I wonder where the math would put the various values to make it basically break-even.
- maratc 4y agoThe amount of money someone needs to spend on a lawyer to actually have "a perpetual right to call it back at ten thousand" will most likely be above a hundred.
- Moissanite 4y agoFor someone with a six-figure income, the marginal utility of an extra $100 is basically nothing - but "notionally worthless" shares are a bit like getting a free lottery ticket every week. You don't expect anything to come of it, but it's nice to dream - and the regret-avoidance factor of not wanting to let go of your lottery ticket is huge. Of course none of this considers the true downside, which is the opportunity cost of working at a startup in the first place, versus a more stable or better-paying alternative.