How can one protect himself from this scenario?
Job offers will not even mention total number of shares outstanding.
Job offers will not even mention total number of shares outstanding.
or, ensure that there's SEC protection for pre-public companies' employees when/if they're issued stock. After all, issuance of stock is in lieu of compensation, so it is effectively an investment.
Since these employees are not "sophisticated or accredited" investors, there needs to be enough disclosure, and protection for them.
The best, and simplest, way to protect the employees is to grant stock with the same set of properties as founder's stocks. If there's dilution, the founders get diluted the same.
Wait, mine told me. You may have to ask. I think it's okay to ask questions about it, if they're offering it as part of the pitch to get you to join.
Startups were barely worth it financially in the mid 2010's, anyone joining one the past few years has gotten majorly scammed.
Still chuckle when I think about Postman reaching out for a job at a 5B valuation with something like 100 employees and less than 50m revenue. Good life lessons for many though
if you do not contribute capital, i dont think you can realistically become _this_ "important".
Note: this doesn't apply if you are a founder obviously