The World of Startup Equity

Startups are hot, and those looking to join startups should be aware of a few things. Thanks to a couple of friends who are startup veterans / serial entrepreneurs for sharing their experience:

First read up on the basics of startup equity for employees.

Next with the knowledge of the startup's current funding position, assess how the options may get affected with another funding event, and get a copy of the perspective company's stock option plan to review, if you can.

Next read up on 83b election and how that you should organize your decisions around vesting schedules.

Finally be aware of different clauses and events so no big surprises take place. Ask the startup founders/executives questions. Experienced founders/executives are often open about the share info and the valuation. It may be a red flag when they are not willing to divulge that information.