Why don't startups give you the strike price for your options anymore?

Question

I remember just a few years ago, my strike price would be in my offer letter. Nowadays, you get your strike price after you sign / join a company, which makes the decision so much more uncertain given I don't know the financial burden I'd be facing. Why is it like that now? Anything I can do to make sure it's within a certain range, I want to ensure that it isn't exorbitant.

Taylor · Accepted Answer

Have you asked? Normally I advise people ask. Normally the recruiter has some idea but they can connect you with someone who can actually talk through this. It's crazy to ask you to take equity which is worth ???k.

coffeepls · Answer

How do options exactly work? I've spoken to some Series D and E startups and they still offer stock options and it confuses the hell outta me when they explain it.

ns556tx68 · Answer

I think it's because the frequency of fundraises has increased to the point that companies just don't know what the 409a valuation is at any given time to price the options. A range of expectation would be helpful though

Why don't startups give you the strike price for your options anymore?

About

Tech

Members