Start-ups are exciting but usually not rolling in money, so they tend to offer equity compensation in the form of stock options, or “pre-IPO” shares. Before you sign on to one of these deals, wouldn’t it be nice to know what it’s actually worth? And if you’re hiring for your own start-up, it’s even more important to know what you’re giving away.
If terms like “derivative” give you the willies, check out this very readable guide from David Weekly, founder of PBworks, which makes online collaboration products. The guide answers such mysteries as what a “liquidity event” is, and what a board actually does.
Read more at TheNextWeb.