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also be aware when you join a pre-series-A company that your percentage of the "founding shares" will not be the percentage of the final shares that comprise th

by nwatson 17y ago

also be aware when you join a pre-series-A company that your percentage of the "founding shares" will not be the percentage of the final shares that comprise the eventual company at the big liquidity event. during the various funding rounds the company may create many, many more shares arbitrarily to hand out to investors, employees, and the CEO's mistress. the dilution of your shares through the various rounds will depend on the perceived strength of your company and the general tech investment climate at the time.

ojbyrne 17y ago
Not to mention the potential for share buybacks. It's a rule of thumb in investment texts that if you're not an executive or on the board, your shares are worth less because of fewer liquidity options. See the recent Facebook share buyback, for example. If you were a former employee (i.e. not someone the executives cared to compensate) you were out of luck. For the vast majority of employment decisions, it's my opinion you should basically just ignore stock or option grants.