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An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

ospflor63.stanford.edu

1–10 of 44 posts

Re: An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

#2
This (extremely well-written) document has made the HN front page at least once before. I think this is a testament to how useful this information is for entrepreneurs. I didn't have time to read it in full last time, glad it's back again.

Re: An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

#3
I would also recommend the book Consider Your Options at http://www.fairmark.com/books/consider.htm . It costs I bought this book back in the early days of Google to make sure I was doing everything right. It's boring but clear and helpful, which is about as much as you can expect from a book about stock options.

Re: An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

#6
Great article!

Does anyone have a link to a document that would detail the ways that you could get screwed over by a startup? Or by VCs? I know there are tricks that can be made via dilution, or something, but all I've heard are horror stories, but no actual mechanics of how it was done, and what you should look out for when looking at joining a startup.

Re: An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

#8

I would also recommend the book Consider Your Options at http://www.fairmark.com/books/consider.htm . It costs I bought this book back in the early days of Google to make sure I was doing everything right. It's boring but clear and helpful, which is about as much as you can expect from a book about stock options.

I'm going to check this book out. But I've always had one nagging question about vesting I haven't found a good answer for.

Say you have a bunch of shares vesting over 2-4 years.

Is it possible (or realistic) to make an arrangement that in the event of an acquisition or liquidity event that your stock becomes full vested? Even if its been less than the full vesting period?

Re: An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

#9
post #8

I would also recommend the book Consider Your Options at http://www.fairmark.com/books/consider.htm . It costs I bought this book back in the early days of Google to make sure I was doing everything right. It's boring but clear and helpful, which is about as much as you can expect from a book about stock options.

I'm going to check this book out. But I've always had one nagging question about vesting I haven't found a good answer for. Say you have a bunch of shares vesting over 2-4 years. Is it possible (or realistic) to make an arrangement that in the event of an acquisition or liquidity event that your stock becomes full vested? Even if its been less than the full vesting period?

Yes. This is dependent on the terms of the exit but is fairly common.

Re: An Introduction to Stock & Options for the Tech Entrepreneur or Startup Employee

#10
post #8

I would also recommend the book Consider Your Options at http://www.fairmark.com/books/consider.htm . It costs I bought this book back in the early days of Google to make sure I was doing everything right. It's boring but clear and helpful, which is about as much as you can expect from a book about stock options.

I'm going to check this book out. But I've always had one nagging question about vesting I haven't found a good answer for. Say you have a bunch of shares vesting over 2-4 years. Is it possible (or realistic) to make an arrangement that in the event of an acquisition or liquidity event that your stock becomes full vested? Even if its been less than the full vesting period?

Yes, this is called acceleration.
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