Hi all,
GF just got a startup offer with choices of options (i.e. less salary more option shares or vice versa). She was told that she can have XXX shares of options in the offer
Not really sure how to interpret that and how the decision process will be because I’ve only got RSUs from bigger companies and she’s a new grad.
The company seems pretty promising but it’s still very early. But we do see some potential based on their track record and their investor compositions. I know it’s very different with RSU this posting my questions here
So our questions
1) what are some of the important questions should we ask the recruiter? Like what percentage the shares make the total company’s shares maybe?
2) what the decision process like? Any pointers to articles etc shall we read?
My TC 250K and GF is new grad
Thanks in advance #tech #startup #tc
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comments
You want to hear 1x liquidation preference, non-participating.
Higher liquidation preference means investors will be paid out more than their investment before you see anything. Non-participating means they don’t get to double dip.
Also if you have two offers with different allocations of salary and options, take the one with more salary. Options are usually a shit deal for employees, and you will likely get screwed out of realizing any sizeable amount of money that your equity might be worth on paper. There are a million ways the founders and investors can do it legally.
“Fuck you, pay me.” is the mantra you want.
Ask what % of the worth of the company she's getting in options and how much "preference" before normal shareholders see any $$$ from a sale/exit.
Expect the company to avoid answering, and do your cost estimates accordingly :-(
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