Re:Sell your startup for half a billion and get nothing (2021)
by avereveard on Tuesday March 05, 2024 @03:48AM
(#39600891)
If you dont pay to get the equity at market value you're most definitely a worker.
Re:Sell your startup for half a billion and get nothing (2021)
by hamburglar on Tuesday March 05, 2024 @05:03AM
(#39601406)
You’re just paying for your equity in a different currency.
Re:Sell your startup for half a billion and get nothing (2021)
by avereveard on Tuesday March 05, 2024 @07:05AM
(#39602285)
yeah, but one that put you in a weaker position because work based equity is often after a cliff and most likely from the non preference pool and doesn't have clause for buy in during fundraising events
Re:Sell your startup for half a billion and get nothing (2021)
by hamburglar on Tuesday March 05, 2024 @02:37PM
(#39608224)
Yes, if you get yourself a bad deal, you get a bad deal. There isn't anything inherently weak about trading work for equity. Don't take a bad deal.
Re:Sell your startup for half a billion and get nothing (2021)
by Freeaqingme on Tuesday March 05, 2024 @07:33AM
(#39602490)
Even when you ask that, make sure to ask for the "_fully diluted_ cap table". It may seem like a small detail, but if you get a cap table that's not fully diluted then what you see may differ a lot from what it ends up looking like once investors exercise their options.
These questions should become so normalized that founders don’t bat an eye at it. If I am an early employee, we are partners. Wanting to know my percentage and the company’s liabilities before I sign is not unreasonable. I also want to hear you talk convincingly about your plans for future investment.