2 ms·
> If a company is currently worth $10m, options for 0.1% are worth $10k. This isn't really accurate. The company is not giving you 0.1% of the company. It is g
by hughdbrown 13y ago
> If a company is currently worth $10m, options for 0.1% are worth $10k.
This isn't really accurate. The company is not giving you 0.1% of the company. It is giving you the option to buy the gain on 0.1% of the company above that value at the time you start. If the company never gains in value, your options are not worth anything.
- gatehouse 13y agoI also think that an individual employee needs to put a discount on options because you don't have the ability to diversify, your risk profile is vastly different than the investors, and the founders presumably have effective veto over exits which allows them to capture more of the value in a middle of the road outcome like a acquihire. I personally think that options should just be used to mitigate the career "risk" of the instability of the company and maybe having to move down-market into some less valuable skills if that's what the company needs.