Retain or surrender ESOPS(75k) when resigning
Fresher, work at an edTech startup (seed). Had 3L as ESOPS, standard vesting. Resigning after one year, have two options: a) Surrender the ESOPS and add 75k to my F&F b) Retain ESOPS and wait for liquidity events Startup is in EdTech and creator domain, raised seed fund(again) recently. Very confused. What to do? Which things to consider?
Isaiah Lee
Stealth
a year ago
Go for cash. You might never see another liquidity event.
Retain ESOPs if you think startup can raise funding again..else take cash and leave..
Kendall Dean
Stealth
a year ago
The startup has raised two seed rounds so far, the second one from Y-Conbinator this April. Currently pivoting to AIxEdTech domain. What do you think is a reasonable decision according to you?
What is Alxedtech,? Can ping me on telegram if you want to discuss more
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Oh wow do companies just buy over the esops on leaving? I thought it’s mostly like either u buy before the expiry else u lose all of it.
Kendall Dean
Stealth
a year ago
I'm not sure how things work ideally, but when enquired, I was informed that I have the above two options. Also, the startup is YC backed.
Ya even I am unaware. Maybe someone else can enlighten. Being YC backed would just add value afaik. It’s good if u can get cash out of the esops as otherwise if the company never undergoes liquidity event or shuts shop then they’re useless.
1. If 75k is not much for you, would and the edtech is doing good, would suggest get the esops in your name. Worst case it will be an expense of 1L.
2. If you don’t want, then maybe I can buy those shares from you, after some understanding about the company, founders etc. ping me at arbitdxc@proton.me
Very difficult, not impossible.
There are startups dealing with secondary sales.
In this case, I assume there will be following major hurdles
- whether GrimBeard wants to
- whether the startup wants to entertain an outside investor for a small stake
- I will have extremely limited info on the financials/growth.
Dezi Dean
Stealth
a year ago
Will ₹75k make a big difference in your life right now? Anything that you dreamt of will get blocked if you don’t get this ₹75k?
If the answer is “No”, then take that bet and assume you lost the money! What if the company does great and you get say 5X returns on it?(The probability is almost zero but never zero).
You will not even remember whether you had that extra ₹75k or not in a month or two!
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