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Unfortunately, even this isn't enough. You have to understand the funding structure of the company as well. Who owns preferred stock? What payment options do th
by enjo 17y ago
Unfortunately, even this isn't enough. You have to understand the funding structure of the company as well. Who owns preferred stock? What payment options do the investors hold?
You may own 1% of the company and the company sells for $100M... that doesn't mean you get $1M. The investors may very well have preferred stock beyond that and you end up with nothing.
Understanding the WHOLE picture is very important for anyone joining a startup. Unfortunately this is a big topic with a lot of stuff you need to understand. You owe it to yourself to know it.
- roundsquare 17y agoSure, thats true. The article should really be titled "the absolute number of shares you get is irrelevant without more information" but that doesn't look snazzy.