Re:How to Not Get Screwed over as a Software Engineer
by Eridrus on Saturday November 04, 2023 @11:36AM
(#38142010)
How do you feel about options that can be exercised for 7+ years after you leave? Does that change your calculus at all.
Re:How to Not Get Screwed over as a Software Engineer
by jjav on Saturday November 04, 2023 @08:58PM
(#38146889)
Yes, that would make mid-growth startups more attractive to join. I know a few startups have done that but I haven't encountered one yet.
Also, wasn't there a scandal a few years ago of a startup that promised that and later canceled? So would have to see the contractual wording carefully.
Re:How to Not Get Screwed over as a Software Engineer
by Eridrus on Sunday November 05, 2023 @03:28PM
(#38155316)
I didn't hear about this, nor could I find anything specific on Google. I did find that apparently some companies have pretty aggressive clawback clauses, which is a huge yikes from me.
Anyway, I think if you ever do talk to a mid stage startup, you should tell them this is what it would take to convince you. More people demanding it will likely cause the market to move.
I've done five startups now and my conclusion is I'll only consider joining a startup at two points:
In the beginning, when the share valuation is less than a penny. The valuation is low, do an early exercise of all shares up front and file an 83b. Now, as you vest, you actually own the shares. So you can leave the company in the future and keep all your so-far vested shares.
Or, late in the startup cycle when the company is already well-known and very clearly on the IPO path.
Anywhere between these points is not worth it. The valuation will be too high to early exercise so may lose everything but the probability of success will be too low to take the risk.