Stock Options: How much time a company takes to go public?
im emphasizing on some bitter news that people ignore just by taking few lucky companies as a reference. my point is: more than 95% starup companies cant make it to IPO stage. The remaining 5% companies are disruptive technology companies which receives a great applaud from the tech communities. Venture capital firms try to encash the applaud by getting a bigger valuations to their portfolio and go for public to liqidate their gains over their investments.
what I think here is:
1) stock options are real big gamble, even if they workout, it majorly helps the executive / senior management team, not the leaf level employees. at times you will be in a situation where you hold vested stock options but cant liquidate though the company goes public, Uber / Lyft folks faving this problem it seems
2) HR ppl lure you with stock options by saying “we gonna go public soon”, but its highly unlikely that any company can reach to an IPO level unless they had 6 to 8 rounds of series fundings, it takes atleast 6 to 8 years of time. dont believe in “SOON”. do a right research
3) we should never trade base salary with stock options, always consider stock options as bonus, it may work / maynot work.
Whats your thoughts on this? agree ?