THREAD:

Wealth tips for founders & early employees...

• Secondaries
• Tax benefits
• Hiring a CPA / Financial Advisor
• Diversifying
• Tools I use
• and more...

Create a plan for your options early:

Think of this as investing in your company. If your company fails, your options will be worthless.

If your company does well, exercising too late will be costly.

Secondaries:

Secondary transactions typically first occur at the Series B [although if your numbers are up and to the right & there's demand for allocation -- it can happen at the A].

Take a small % off the table to de-risk yourself financially (rent, food, transportation, etc)

Existing investors will often offer to purchase your secondaries.

This way it keeps your cap table clean and gives your investor slightly more allocation.

Look over your ROFR/Co-sale agreements and chat with your co-founders and/or investors.

If you're selling stock to an existing or new investor during a financing, a "discount" is usually applied.

Make sure you negotiate the discount on the Preferred share price and not Common.

5-20% is considered normal.