Re:Ask HN: Our founders are just assholes. What are the chan...
by hedora on Saturday August 03, 2019 @12:41PM
(#20601291)
One more thing: It is common practice to let employees sell off vested stock during fundraising rounds.
If you stick around, but are still uncomfortable with how things are trending, job stability, etc, devise a reason to cash out some of your vested equity, and see if they will set up a program for this.
The normal scenario is that they need to raise $X dollars in some round, but find investors with 1.1 * $X to invest. The employees end up selling 0.1 * $X of stock at whatever valuation the fund raising round comes up with. This can be a good way for employees to get liquidity at the expense of potential future gains, and it avoids dilution for everyone else (unlike raising money, and then using it to give out bonuses).
If you stick around, but are still uncomfortable with how things are trending, job stability, etc, devise a reason to cash out some of your vested equity, and see if they will set up a program for this.
The normal scenario is that they need to raise $X dollars in some round, but find investors with 1.1 * $X to invest. The employees end up selling 0.1 * $X of stock at whatever valuation the fund raising round comes up with. This can be a good way for employees to get liquidity at the expense of potential future gains, and it avoids dilution for everyone else (unlike raising money, and then using it to give out bonuses).