Hi reddit, I am working at my first startup and therefore don't have much experience in this world and would love some advice. I started working at my current startup job about 2 years ago, and when I was hired I was given stock options (ISOs)- specifically, 10,000 options with exercise/ strike price of $ .66 per share (4 yr vesting schedule, 1 year cliff). Given the direction the company is trending, I feel as though I'm in a position to make some significant money, but after reading through some threads about how 99% of employee stock options are useless, I'm wondering if I'm missing something or being overly optimistic. Here are some details on the company:
- Founders have started several successful companies in the past. Their last company IPOed at $10 per share (total IPO worth $65 million). This company has since grown to a multi-billion dollar valuation.
- Entire executive team is very successful, most have decades of experience at startups/tech companies.
- We have exponential growth, our revenue this year is 3x what is was last year.
- Total addressable market is extremely large.
- Over $100 million in funding.
-CEO says if we continue to have good growth, we could IPO in 3-4 years time.
So obviously this looks promising, but I'm still not sure. Say we continue our growth and IPO at $10 a share, I believe that would mean I could buy my options (about $6,600) turn around and sell them to make about $100k, before taxes. And I know taxes can take a significant chunk off too.
Does this look right/possible or am I being overly optimistic about this?
Thanks!
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