What questions would you ask when being offered equity in a startup as an employee?

[Albert]

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?

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What questions would you ask when being offered equity in a startup?

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