Yes, companies can give every employee a “loan” that allows the employee to early exercise stock options.
They don’t.
Not because they’re evil. Because if a company fails they don’t want employees to personally owe hundreds of thousands of dollars to pay for worthless stock.
They don’t.
Not because they’re evil. Because if a company fails they don’t want employees to personally owe hundreds of thousands of dollars to pay for worthless stock.
https://twitter.com/theryanking/status/1493390184897032201
I’m a big risk taker, but doing this for a late-stage company with a 9-10 figure 409a trading at >100x revenue?
I get nervous even reading this thread.
I get nervous even reading this thread.
Didn’t even think about this - the company has raised $1B (in preferred stock) and is raising more.
A $1B+ pref stack.
All employees have common stock.
If the company sells for less than $1 Billion employee shares are literally worthless.
😳
A $1B+ pref stack.
All employees have common stock.
If the company sells for less than $1 Billion employee shares are literally worthless.
😳
I believe in people making their own decisions and I really truly hope for the best for everyone involved.
But employees taking out big recourse loans to early exercise common shares of a company with <$100m revenue, a huge ARR multiple, and >$1B pref stack…
😬😬😬
But employees taking out big recourse loans to early exercise common shares of a company with <$100m revenue, a huge ARR multiple, and >$1B pref stack…
😬😬😬
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