Hi, I have worked briefly at a startup that still hasn't been bought by any other company. I have some stock options with this company. I was recently approached by someone to buy this equity. Firstly, is this safe to do? And is it a good option to sell or hold on till company gets sold? Overall the company is stable with good funding but hasn't shown very strong signs of being bought after more than 8 years out of stealth mode. Any input is greatly appreciated. Thanks.
Am in a somewhat similar situation
You hold common stock and the company typically has these rights over those: 1) The company can buy it back at the current price of the common stock (which can be 20-90% less than the preferred stock sold to the investors), 2) The company has the right to first refusal (you have to offer the company the opportunity to purchase the stock first). If the startup is doing well (as in, investors are clamoring for it's stock), then they will just buy back your common stock. If they don't, you have the option to sell it to someone else (if the startup didn't buy it back, then the other party may not find it attractive either). So the system is setup for the common stock to get back to the company till a true liquidity event can happen.
You clearly work at that one ocean company given your description. It's safe to do, but the board will block it.
What’s the startup?