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Re:Elizabeth Holmes Owes About $25M to Theranos by siberianbear on Thursday April 06, 2017 @04:40AM (#14048907)
83B is for grants of restricted stock, not for stock options.
Re:Elizabeth Holmes Owes About $25M to Theranos by scurvy on Thursday April 06, 2017 @09:45AM (#14050416)
Understand that but as a founder, why would you give yourself options over stock? It's your company. That makes no sense. You need to pay in capital in some form.
Re:Elizabeth Holmes Owes About $25M to Theranos by dkfmn on Thursday April 06, 2017 @10:12AM (#14050633)
The key is that you need to align incentives for employees, investors, etc by demonstrating a long-term commitment to the company. Lots of more nuanced discussions of this topic exist but here's one I have at hand: http://startupclass.samaltman.com/courses/lec18/
Re:Elizabeth Holmes Owes About $25M to Theranos by brianfitz on Thursday April 06, 2017 @05:25PM (#14054777)
They likely were giving her additional grants later in the life of the company upon reaching certain milestones to make up for her dilution at a strike price that required millions of dollars to exercise. You can get away with founder stock very early on, but at some point, it becomes untenable as the value of the company grows.