Re:What I Wish I'd Known About Equity Before Joining a Unicorn
by JonFish85 on Wednesday January 18, 2017 @10:51AM
(#13427182)
>> Equity is a good bargain right before the next funding round — when cash balance is low and founders pay with shares.
I don't think that's true in general. If it's right before the next funding round, that's when terms can change to wipe you out (whether it's a down round or multipliers). I guess on-paper it can look good ("oh the valuation just increased 5x overnight!"), but it can do some pretty nasty things to your options' "value".
I don't think that's true in general. If it's right before the next funding round, that's when terms can change to wipe you out (whether it's a down round or multipliers). I guess on-paper it can look good ("oh the valuation just increased 5x overnight!"), but it can do some pretty nasty things to your options' "value".