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Equity at a startup is essentially worthless. Exercise prices, taxes, 90 day max exercise windows, asymetric price information, preference stacks, all contribute to a lack of clarity.

Of course eveyone thinks their company will be worth a cool billion but thats rarely the case. Plus founders and investors are incentivized for your options to expire; they go back into the pool.

Startup compensation needs a refactor pretty badly.



You forgot venture debt, warrants, & management carve-outs during M&A.




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