When getting offers from start ups or private companies, how do you negotiate the equity since actual stock price can be different if it was public. Do you negotiate overall amount and/or price per share? Can price per share be negotiated?
Overall amount. Price per share isn’t negotiable
Any strike price different from the 409a valuation incurs immediate taxable income, so it's just worse for you than giving you cash. You can offer to take less cash for more equity, I think a lot of startups would be down for that. Otherwise you negotiate it like every other offer and say you'd like them to match competing offers.
Thanks. So normally strike price should match 409a valuation and not higher, otherwise I may lose money. If they offer higher strike price, should I ask them for the 409a valuation price match per share? Let me know if I understand this correctly:)
yeah, strike price should match 409a, very weird if it doesn't.
Negotiate number of shares or % of the outstanding shares
How do you know if .25% is better than .24% with 20k more cash? Is series b better or try to get series c/d ?
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