Any thoughts on startup options?

New bh64b
Feb 10 14 Comments

I joined a startup and have like 70k options in it the startup is profitable and has decent amount of customers but I need to leave it anyways for multiple reasons. The thing is its going to cost me 5k+ to buy all the options and the CEO wont even tell me the outstanding diluted shares or even exactly how much money we've raised. What should I do/ask to first determine if these shares are worth anything and what has been your experience buying options?

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TOP 14 Comments
  • Oscar 🐨koala
    I am on the opposite side. I would just leave and forget about the options. Keep that 5k for other uses. If we haven’t heard of it, the chance of you making any money is quite low. Might as well invest in a fund.
    Feb 100
  • Uber random04
    5k is not bad, worth the investment
    Feb 100
  • Akamai Technologies / EngJfcv74
    Don't invest what you can't lose. If you dropped $5K out of your pocket would you be in financial trouble? If not, go for it. If you would, then it sounds like you can't afford anything but a sure bet, and this won't be that.

    I was able to walk away with my options for $137, and that was a no brainer. I knew they would probably be worthless (and they were, in the end), but for $137 it didn't matter.
    Feb 102
    • Oscar 🐨koala
      Wow... $137 lol that means you’d make pennies.
      Feb 10
    • Akamai Technologies / EngJfcv74
      I made nothing, but the company DID get bought, just had so much debt. Could've easily gone the other way and even at $1/share that's $13.5K for nothing.
      Feb 10
  • Flowroute / OtherxYVT46
    Is there any info on crunchbase that points to how much they've raised? The lack of transparency from the CEO would make me walk away.
    Feb 101
    • New bh64b
      OP
      Not a whole lot although we do have investors and apparently were still seed
      Feb 10
  • Sounds like a shady place if the ceo doesn’t even tell the employee $ raised or outstanding shares.

    I bet profitable is also a lie. At seed stage, no company is profitable.
    Feb 100
  • PG&E MaxaM
    If it’s already profitable then it sounds like a worthwhile lottery ticket.
    Feb 100
  • 5k is cheap so I'd do it but not knowing the total dilluated shares is a red flag
    Feb 101
    • New bh64b
      OP
      Exactly my thoughts
      Feb 10
  • Google / Engcatow
    Very situational. What’s the company?
    Feb 101
    • New bh64b
      OP
      Cant say obviously and I can guarantee you've never heard of it.
      Feb 10
  • Reddit funkfunk
    Keep in mind it may cost 5k to buy the options, but if they are ISO you will owe tax on the fair market value which may be way more than 5k
    Feb 100

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