Funding round between accepting offer and start date
I start at a new company on Monday. This week they announced a new round of funding. Am I right to think that this is bad news for the strike price on my options even if it’s good news for the overall value of exercising them down the road? Would this normally be grounds for asking for more options or a larger signing bonus to cover some of the difference in strike price?
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Yes your strike price will be higher than it would have been had you joined earlier. It’s likely that a term sheet for this round was received multiple weeks ago. Once a term sheet is received they would’ve stopped issuing new stock then (so it’s not like you just missed it by a week) until it closed.
This is assuming the round wasn’t a flat or down round
I was told the current strike price on November 18. I’ll hope for now that it was after the term sheet was received. 👍 Thanks!