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What is worse is, employees -- who make up the common-pool -- don't get to see the terms of these late stage rounds. So, their share of valuation is sinking and they are not made aware of it.

Also, doesn't outstanding stock an useless/misleading metric without disclosing liquidation preferences of the investors?

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If the employees have stock, they'll be entitled to see the amended and restated certificate of incorporation, which would show liquidation preferences, etc.

If they only have options, they're not entitled to anything, though they could pay to download a copy of the certificate of incorporation from Delaware (it's a public document).

That said - your point is well taken. Most employees likely have no idea what terms the Company is raising money on at any given time.

Thanks for that information.

NSO and ISO are usually termed Stock Options.

Which category are they? "stock" or "options"?

When you exercise your option, it's no longer an option, you're now holding a share.

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