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Yes, and the awareness that most startups don't make it so don't count your chickens too closely.
What’s the total # of shares, what percentage of the company do you have, what’s the current 409a (which will be your strike price) per share (it should be low compared to the investors’ preferred valuation, nowadays a 1:3 ratio is common), do you get early exercise, are they ISO or NSO or a mixture of both. Read EquityZen they have great info on this and will help you learn how to evaluate the offer. Are there any restrictions on selling on secondary market, should you decide to leave or are fired before a liquidity event. A lot of companies have been getting sneaky with this even though it’s basically unenforceable Great read: https://www.benkuhn.net/options A few hours of reading can make/save you tens of thousands in taxes, effort, and gains.
Thanks I’ll check that one out
Number of shares is meaningless without understand the total outstanding shares. Ask for that.
Is that 50,000 shares or dolla dolla bills
Shares
This is a longer term play but needs planning — look up the Wealthfront article on “Qualified Small Business Stock” or “QSBS” and IRS section 1202. Not sure if the new tax proposals affect this but it could make a huge tax difference.
Thanks.. by the way update... turns out is 0.125% of total authorized
That's not bad at all. Director or VP level role then?
Director
Sounds very fair to me. Just also note that you'll dilute as the company raises more funding--all part of the game.
how is this a good offer for a director? is it because it’s presumably in the biotech space? 0.125% is a new grad tech offer
Still digging into it, it’s not biotech, so % would actually need to be higher... just starting the negotiations now
New grad tech offer at a startup that is desperate maybe, but not a solid one by any means. Once a company has raised that much, your ability to get anything decent basically becomes nil without being senior. It's a large pyramid...
20 mil in the series a just means the founders took a massive hit on the dilution. this isn’t even particularly good for a new grad offer...
At director level and at this stage if they really want you they might be willing to go up to about .22% - .25%. IMO / YMMV
Ask for a trigger.
Like to accelerate vesting if they sell?
More so, if they decide to let you go.