Equity vs stock options (startup)












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  • Is there any significant disadvantage receiving stock options vs.
    shares in a new startup?

  • What could be the excuses for not giving shares but stock options and
    would it be reasonable to insist on shares?


Background: I may be joining a fresh but fully funded (pre series A) startup. I would be employee #5. I would be fully committed and invest 100% of time. Hence I would expect equity (like 0.5%-1%?) but I think I heard somebody talking about stock options. The latter would not motivate me too much to work in a startup but that's just a feeling so I wonder if there are actual disadvantages of stock options vs. equity.









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    • Is there any significant disadvantage receiving stock options vs.
      shares in a new startup?

    • What could be the excuses for not giving shares but stock options and
      would it be reasonable to insist on shares?


    Background: I may be joining a fresh but fully funded (pre series A) startup. I would be employee #5. I would be fully committed and invest 100% of time. Hence I would expect equity (like 0.5%-1%?) but I think I heard somebody talking about stock options. The latter would not motivate me too much to work in a startup but that's just a feeling so I wonder if there are actual disadvantages of stock options vs. equity.









    share







    New contributor




    divB is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
    Check out our Code of Conduct.























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      • Is there any significant disadvantage receiving stock options vs.
        shares in a new startup?

      • What could be the excuses for not giving shares but stock options and
        would it be reasonable to insist on shares?


      Background: I may be joining a fresh but fully funded (pre series A) startup. I would be employee #5. I would be fully committed and invest 100% of time. Hence I would expect equity (like 0.5%-1%?) but I think I heard somebody talking about stock options. The latter would not motivate me too much to work in a startup but that's just a feeling so I wonder if there are actual disadvantages of stock options vs. equity.









      share







      New contributor




      divB is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
      Check out our Code of Conduct.













      • Is there any significant disadvantage receiving stock options vs.
        shares in a new startup?

      • What could be the excuses for not giving shares but stock options and
        would it be reasonable to insist on shares?


      Background: I may be joining a fresh but fully funded (pre series A) startup. I would be employee #5. I would be fully committed and invest 100% of time. Hence I would expect equity (like 0.5%-1%?) but I think I heard somebody talking about stock options. The latter would not motivate me too much to work in a startup but that's just a feeling so I wonder if there are actual disadvantages of stock options vs. equity.







      salary hiring-process startup equity





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      divB is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
      Check out our Code of Conduct.










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      share



      share






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      asked 8 mins ago









      divBdivB

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