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If they just raised at a $40mm valuation, 0.5% equity is literally worth $200k to them right now True for a stock grant, but these are stock options.
by danielweber 14y ago
If they just raised at a $40mm valuation, 0.5% equity is literally worth $200k to them right now
True for a stock grant, but these are stock options.
- mrkurt 14y agoThe strike price on options is usually really low relative to fund raising valuations. It's not vastly different than an equity grant, at least in the cases where it matters (ie: good ones). I think everyone would prefer to just give actual equity, but the tax implications are pretty terrible for the recipient.
- danielweber 14y agoIf the strike price isn't the current valuation, that's technically a taxable event. Probably no one will care because there is no liquid market to prove the valuation.