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I wish more people knew this. Even if you beat the odds and the startup you work for goes places, you may only get 10%-15% of the proceeds now, and be hoping f
by thecage411 12y ago
I wish more people knew this. Even if you beat the odds and the startup you work for goes places, you may only get 10%-15% of the proceeds now, and be hoping for the rest even further out in the future. Almost certainly better to just work for a public company from the start.
- pedalpete 12y agoAre you saying you only get 10-15% of the proceeds of YOUR vested stock? So if I have 1% of a $100m company, my shares would only get me $100k, not $1m? Can you explain or link to a source of more information?
- throwaway7808 12y agoIf you have 1%, most likely you are an early employee. There's a formula: VCs and founders get reach, early employees get screwed and employees get their market salaries.
- rhc2104 12y agoPetalpete - the comment above refers to pre-ipo sales of employee stock. A bunch of private companies that hit billion dollar valuations let employees sell some of their shares. That person is claiming that those sales allow employees to sell 10-15% of their vested stock. Of course, if they do that, they still keep the other 85-90%.
- thecage411 12y agoThis is exactly what I meant, thanks for filling in the details.
- lanstein 12y agoYou can opt to sell in the IPO/secondary, but otherwise you're generally free to trade when the trading window is open for current employees (typically) 180 days give or take post-IPO.