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> You should be completely mistrustful of anyone who offers you shares and doesn't tell you the # of shares outstanding. this is an amazingly important point t
by ryanburk 12y ago
> You should be completely mistrustful of anyone who offers you shares and doesn't tell you the # of shares outstanding.
this is an amazingly important point that many people I've seen new to the startup world ignore to their peril. it is too easy to get big eyes when you hear you are getting 50,000 options not realizing that it is only 0.000001% of the company since you don't know # of shares outstanding, across all classes of shares.
- aetherson 12y agoIt's maddening, too, because nobody ever just tells you the actual shares. EVERYONE says, "You'll get 50,000 options!" My answer is always, "Okay, and what percentage of the company is that?" and the answer is always, "Um... I'd have to go look it up." Just once, I'd like someone to provide that information for me proactively. It would instantly increase my estimate of their integrity by 150%.
- STRML 12y agoI don't understand how one could not know what percentage of the company that is. It seems wholly irresponsible not to; both from the perspective of the potential employee (who may get too little) and from the perspective of the employer (who may give away too much).
- technofiend 12y agoWell that and do they mean 50k options as traded on the open market or options enough to purchase 50k shares? I had an employer promise one and then try to weasel into giving me the other. I threw a fit and made them fix it. Theynwere bankrupt a year later. :whomp whomp: But my point is when they say "option", ask them to define it One is worth 100 times more shares.