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Open guide to equity compensation

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656 points mooreds | 1 comments | 13 Apr 25 19:13 UTC | HN request time: 0.204s | source
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lizknope ◴[14 Apr 25 13:29 UTC] No.43681043[source]▶
Why didn't I get any money from my startup? - A guide to Liquidation Preferences and Cap Tables

https://www.reddit.com/r/startups/comments/a8f6xz/why_didnt_...

I've posted this before but it's a great read. Even if you have millions of shares, the dilution and later investors could still leave you with nothing.

I worked for 2 startups, both failed, but I never got to see the cap table.

replies(3): >>43682779 #>>43684112 #>>43692724 #
1. jmuguy ◴[14 Apr 25 16:02 UTC] No.43682779[source]▶
This is excellent and illustrates that unless you have access to the cap table, you have no idea what your options are worth. Sometimes you can at least get a founder to tell you what the preference stack looks like, and what multiples were given to investors, and that might be enough to kind of sort of work out what an exit looks like.