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Should You Join That Start-up? Here’s How To Decide

Posted By Minda Zetlin On November 22, 2011 @ 3:00 pm In Managing Technology,Tools on Managing Technology | 2 Comments

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 [1]? 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 [2] 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 [1].

Article printed from Inc. Technology: http://technology.inc.com

URL to article: http://technology.inc.com/2011/11/22/should-you-join-that-start-up-heres-how-to-decide/

URLs in this post:

[1] what it’s actually worth: http://thenextweb.com/entrepreneur/2011/11/21/want-to-be-the-next-zuck-read-this-guide-to-stocks-and-options-first/

[2] guide: http://ospflor63.stanford.edu/upload/An-Introduction-to-Stock-Options-for-the-Tech-Entrepreneur-or-Startup-Employee.pdf

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