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Startup equity compensation · Signal 3.0

Privy Founder Outlines Employee Equity Grant Rules

This. Early Privy rules @asta_li and I set - Grants not options until our 1st priced round - 7 year vesting and early exercise on options, regardless of tenure - If we take any secondaries, the entire team has access - Impact scales, so too ownership -- normalize new grants

This. Early Privy rules @asta_li and I set - Grants not options until our 1st priced round - 7 year vesting and early exercise on options, regardless of tenure - If we take any secondaries, the entire team has access - Impact scales, so too ownership -- normalize new grants

Many startup employees do not recognize the sheer litany of ways that a founder can screw you over without you even knowing. Founder trust is one of the most important things to look at when you’re joining a startup. From cutting you out of M&A, screwing your retention pool, overdiluting your equity, firing you before your cliff, not having attractive…

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options exercise plans, poor 409a price management, not telling you about QSBS / early exercise, blocking you from participating in secondary, obscuring company performance and many more. Many many decisions that are made in rooms you are not in as an employee where the only thing that matters is: “does the founder have your back?” Great startups with untrustworthy founders lead to poor outcomes and often good startups with trustworthy founders lead to great outcomes. Pick wisely.

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