Comments on: Startup Stock Options: Granting and Pricing http://www.naffziger.net/blog/2007/04/30/startup-stock-options-granting-and-pricing/ Startups, Search & Seattle Wed, 28 Jul 2010 01:56:51 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jalmm http://www.naffziger.net/blog/2007/04/30/startup-stock-options-granting-and-pricing/comment-page-1/#comment-6588 Jalmm Thu, 01 Jul 2010 00:26:36 +0000 http://www.naffziger.net/blog/2007/04/30/startup-stock-options-granting-and-pricing/#comment-6588 Dave, very helpful, thanks for sharing! i have one question related to grants made poat 409a. i'm about to join a startup that just went through a second round of financing, and had to file 409a. the valuation went from a few cents to almost a dollar. the hiring manager pointed out it would affect the stock / option i'd get. does it mean i get less stock now then someone who joined say 6 months ago? what are the usual disavantages of getting stock post 409a? Dave, very helpful, thanks for sharing!
i have one question related to grants made poat 409a. i'm about to join a startup that just went through a second round of financing, and had to file 409a. the valuation went from a few cents to almost a dollar. the hiring manager pointed out it would affect the stock / option i'd get. does it mean i get less stock now then someone who joined say 6 months ago? what are the usual disavantages of getting stock post 409a?

]]> By: Dave Naffziger http://www.naffziger.net/blog/2007/04/30/startup-stock-options-granting-and-pricing/comment-page-1/#comment-6437 Dave Naffziger Sun, 16 May 2010 00:40:04 +0000 http://www.naffziger.net/blog/2007/04/30/startup-stock-options-granting-and-pricing/#comment-6437 Every time I've seen an options agreement, the strike price is set at<br />the time of grant. as part of your option agreement. It is common<br />that new option agreements need approval from the board before they<br />are effective and can sometimes lag the date that they are verbally or<br />otherwise granted. Usually there is language in the letter (if it is<br />an offer letter) of something along the lines of 'pending approval by<br />the board of directors'.<br /><br />Keep in mind I'm not a lawyer - I'm just describing what I've seen in<br />my limited experience. Every time I've seen an options agreement, the strike price is set at
the time of grant. as part of your option agreement. It is common
that new option agreements need approval from the board before they
are effective and can sometimes lag the date that they are verbally or
otherwise granted. Usually there is language in the letter (if it is
an offer letter) of something along the lines of 'pending approval by
the board of directors'.

Keep in mind I'm not a lawyer – I'm just describing what I've seen in
my limited experience.

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