It’s crazy how few people understand basic startup equity but are faced with major career decisions based on these concepts.
• What is the latest valuation of the company?
• When was the valuation set?
• How was the valuation set?
• How many shares outstanding?
• How will i receive equity? options? RSUs?
• What is the vesting schedule?
• Paid over 4 years w 1 year cliff is normal
• Is there a standard equity program?
• Do all employees get equity?
• Do leaders / executives receive the same form of equity as me?
• What is the fundraising plan?
• What is the plan/expectations for an exit?
• What is a reasonable valuation at the time of an exit?
• I want equity because I believe in the company long-term
• I want to be aligned with the leaders/founders
• The more information I have the better decision I can make for my family