Hacker News Reader

Comment by RestlessMind | Hacker News Reader

Is there any guarantee of a cash-out opportunity at private startups? Or is it at the mercy of your employer and one can even have bad experiences like Zynga where your options could be clawed back?

View on HN

Most startups in SV though have a standard ROFR clause. So as long as you can find a buyer, you would get paid.

That being said, read the options agreement carefully and ensure your interests are well protected.

"read the options agreement carefully and ensure your interests are well protected."

It's worth noting that, in nearly all cases, you will not receive an options agreement until well after you have accepted the offer.

I've never tried to ask for an options agreement prior to accepting an offer, but I'd imagine it would be a very difficult thing to get at most companies.

So you accept the offer, get the options agreement and if it does not work for you then you find another job and move on.

...or maybe you've quit another job, or moved across the country, or any number of things that aren't easily reversible decisions. Not everyone is 20 years old, single and childless.

Point is, negotiate a salary that meets your needs, and treat the stock options like lottery tickets, because that's what they are.

If you are not 20 year old, single and childless, you should probably not rely on options in a non-public startup to fund yourself.

If you are 20 years old, single, and childless, you still shouldn't rely on options in a non-public startup to fund yourself; your age, marital status, and children or lack thereof don't have any bearing on the fact that those options are a “maybe someday worth something" thing, not something with any reliable value or time when they will be liquid.

My understanding is that it's entirely at the mercy of whatever contract you signed.

Reply on news.ycombinator.com