How startup stock options work, from the job offer to the day they pay
Liquidation preference: why investors are paid first when a startup is sold
A buyer offers millions of dollars for your startup. You own a small part of it, so you do the sum and smile. Why can the real number for you be zero?
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1
In your fifth year, the app grows more slowly, and money runs short. A buyer offers $15 million for the whole company.
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You count fast. Your 50,000 options, all vested now, are 0.25% of the company, and 0.25% of $15 million is $37,500. Miva shakes her head.
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