If you were to join an early-stage startup, should you pick an offer heavy on options or cash?
- Huge potential upside.
- Options allow you to make real money by turning your labor directly into capital, which is productive, unlike cash.
- The potential of a tech-bubble burst would make your options worthless.
- The chances of success for a venture-backed startup are small.
- Investors and founders have changed the model to their advantage, but no one has changed the model for their employees.
- Stock options may require 4-year vesting periods when it may take 10-12 years for the company to go public, making it less attractive for employees.
- You should be better off with more options, rather than more cash, but only after covering your most essential needs.
- You should not join a startup hoping for immediate cash in the first place.