Beware! Biggest Problem with pre IPO startup comp
When I got offer from affirm last year, I was so happy that I could be a millionaire when the company goes public. I got around 70k shares which is really huge.
After an year, I felt the biggest punch! I found out that i cant leave the company until the company goes public. If I leave , say for example, after 2 years, I would have to pay 35k into 4$ strike price equaling 140k to keep my options. If I stay for 4 years, that's whopping 300k when i leave...
I am not really sure if I should invest 300k in any pre IPO company if I plan to leave. If you dont have money, you are messed up. I know that affirm is doing really good but still.
What do u guys think? Am I missing something? I am wondering how people do at slack, stripe and all where strike price is much higher. I do agree that lot of bay area millionaires happened because of startups only.
God bless uber and Lyft employees! I heard uber is at 50. Lol.