4 ms·

The expected value of a startup, even pre-Series A, is not 0.

• 7Figures2Commas 12y ago
  You seem to be confusing the expected value of a startup with the value of one's equity. There is a reason that the vast majority of vested stock options go unexercised when employees leave companies. Additionally, you are not factoring in liquidation preferences. Rhetorical question: what's 10% of $10 million when your investors put in $5 million and have a 2x liquidation preference?
  • ant6n 12y ago
    You seem to not understand the notion of expected value. If the strike price is a concern, it could probably be negotiated down. I had the impression the they have generally gone down anyway.
    • 7Figures2Commas 12y ago
      > If the strike price is a concern, it could probably be negotiated down. Please ask a qualified accountant about Section 409A of the tax code and what happens if you're granted stock options at less than fair market value.