How can I acquire shares
I recently started working for a small startup. When I was first negotiating my benefits they said that there would be a possibility to acquire shares down the road. Well I've been here for about 5 months now and some of the tech I built is really taking off and has the potential to become one of our larger revenue streams. I have a feeling that the company will soon become much larger and I want to get some shares before that happens. Any tips on how I should ask? Or what I should ask for?
Sounds like some bullshit
If a bull shits in the forest can anyone smell it?
There are about 12 million shares floating around. Mostly doled out to founders and investors
Make sure you understand the percentage that you would be receiving. At the end of the day that's what really matters. They could tell you they'll give you a 100,000 shares, but if that equates to only 0.0001% of the outstanding shares then the company really has to hit it big for those to be worth much to you. Also, understand the tax consequences and how the shares vest. Most likely they will give you options to buy shares and not actually grant you shares outright. Find an accountant who can help you understand the impact.
A startup that doesn't offer share options to all employees automatically isn't much of a startup. I guess you're not in silicon valley. Unfortunately you lost your best chance of negotiation when you accepted the original offer. If it's any consolation, most share options are nothing more than a lottery ticket, with about the same odds.
You could ask to buy shares or forgo a raise in exchange for shares
You have to be willing to leave (but don't pull that card right off the bat) Tell them you would like to have a long term incentive based on the company's upside because you really believe in the company's vision and would like to commit to them long term. If that doesn't get their attention, look for another gig and then tell then you're leaving when you have an offer in hand.
Dang! This is the best company I've ever worked at and I don't wanna leave. I guess they don't have to know that. Hopefully they don't call my bluff. Would you say I am correct in saying that I only get one chance at this?
LM80 said you have to be willing to leave. If you're not, don't threaten to. Focus on making a strong case for yourself. Bonus points if you can show strong data that proves your work is a major factor in the bottom line.