How startup stock options work, from the job offer to the day they pay
When a startup is sold or shuts down: what your stock options pay in the end
When a startup is sold for a big price, employees with stock options finally get paid. But how much does each option bring, once the investors take their part? And what if the company shuts down instead?
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1
Miva and Rono said no to the $15 million offer and kept going. In your seventh year, the app is in every neighbourhood. A big company buys the whole company for $200 million.
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2
This time the price is far above the $17 million the investors put in, so they take their percentage instead, like everyone. Every share gets the same $10.
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