Re:Startup Stock Options – Why A Good Deal Has Gone Bad (2019)
by pianoben on Monday December 21, 2020 @03:15PM
(#25499039)
I worked at a promising mobile-app startup whose gigantic ambitions didn't pan out; I figured they'd be an acquisition target and bought my options for like $4K. At some point the founders decided to cash out, but instead of selling, they started paying out dividends.
That first check alone more than tripled my money - and came with a cap table, too, so I could see the $1m+ payouts to each founder as a nice little lesson in the disparity between founder and early-employee outcomes.
Not that I'm complaining - this has turned into the single highest-performing investment I've ever made :) Career-wise it launched me into the big leagues. A+, would do it all again.
The only other startup that paid me equity money, I got enough to buy a used motorcycle. Yay.
That first check alone more than tripled my money - and came with a cap table, too, so I could see the $1m+ payouts to each founder as a nice little lesson in the disparity between founder and early-employee outcomes.
Not that I'm complaining - this has turned into the single highest-performing investment I've ever made :) Career-wise it launched me into the big leagues. A+, would do it all again.
The only other startup that paid me equity money, I got enough to buy a used motorcycle. Yay.