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+--- Thread: What questions would you ask when being offered equity in a startup as an employee? (/showthread.php?tid=8328)
What questions would you ask when being offered equity in a startup as an employee? - Albert - 08-28-2022
What questions would you ask when being offered equity in a startup as an employee?
Hi,
I've been offered a contract at a startup and am not really sure how to evaluate what is being offered and also how I could get tripped up/what to watch for.
Offer
- Vesting period of 5 years
- Vesting every quarter
- Vesting cliff is 18 months
- Vesting is accelerated if the company is acquired within the 5 years vesting period.
- x Share options in EMI scheme. I've been told the target exit range and the estimated share price at the top and bottom ends.
My Questions so far
- How would vesting be accelerated in the event of an acquisition?
- Do the options mean I have the option to buy the shares at a certain price, what would that price be and how could that change?
- Would the total income per share would be?
- If I leave the company after the cliff, will I still have the options given?
- Can the stock be diluted and how could that affect me?
- What percentage of the company does X shares currently reflect?
- Would there be the potential for a change in what is being offered if things go well?
What questions would you ask when being offered equity in a startup?
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