It's illegal to even make the offer in the US unless your investors are "qualified" (an SEC definition covering net worth and income that is a proxy for their r

It's illegal to even make the offer in the US unless your investors are "qualified" (an SEC definition covering net worth and income that is a proxy for their risk capacity). Employees are considered insiders and exempt from the "qualified investor" requirement. Read up on the Securities Exchange Act of 1933 (e.g. http://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1933 http://en.wikipedia.org/wiki/Securities_Exchange_Act_of_1933 ).