That’s because there are still enough willing pawns that accept these offers without knowing what they’re getting. That won’t change until the market wakes up and enough people stop subjecting themselves to such nonsense to the point that companies can’t hire. Until then, as the saying goes there’s a sucker born every minute. If you think I’m being syndical, ask a typical startup to see everything people have described in this tread and watch them squirm.

I agree. I think it would benefit all of us if we were more informed about the types of tricks startups use to lure people like this. If we were more informed, then they would have to start being more open about the actual value. I feel like this kind of thing could almost be taught to CS students in some kind of negotiation class!

With the caveat that you don't need the full cap table - a company not disclosing outstanding shares, last preferred price and 409a/strike price are giving you a signal to run away.

Agreed that liquidation preference would be helpful, too, but if at the time you're signing on you think the liquidation preference will come into play you shouldn't join them.

If you want someone to stop bothering you about working at their startup just ask for the cap table.

This is such good advice to filter out all the recruitment emails XD

Instead of responding “not interested”. I’m just gonna start saying “show me the cap table”. Love this idea

Also watch out for a clause giving the buyer the right to buy back the employee shares, possibly at par value.

That means you could have executed those options 5 years ago (to prevent a windfall tax), and just get you money back at acquisition time. Zero interest five year loan. Thanks!

What the hell, is that a thing? Does it have a name?

More details: https://stockoptioncounsel.com/blog/standards-ownership-cant...

Drag-along rights, with a waiver of appraisal rights?