OldReform
OldReform

Are your ESOPs worth it?

My profile: EX. Founder turned Product+ strategy person YOE: 5+ ESOPs: 80 lakhs Cliff: 1 year Vesting period: 48 months

I am still thinking after how many years it will be valuable given the liquidity is very rare for ESOPs. Any thoughts?

9mo ago
K_os
K_os

most start up wont list

OldReform
OldReform

Exactly. And there are so few buyback events in the whole ecosystem. How much do you have?

K_os
K_os

I had 30L. Don't think it will ever list or any buy back will happen

BorrowerBadshah
BorrowerBadshah

ESOP value has following risks

  1. Company growing sizeably and being valuable
  2. Founders ensuring liquidity events for everyone.

You should be joining early stage startups for the experience and your growth. ESOPs should be taken with above two probabilities

OldReform
OldReform

My concern is that in the last 7-8 years I have rarely heard about liquidity. ESOPs are always the last ones to get liquidity after VC, angel, founders....

BorrowerBadshah
BorrowerBadshah

VC/Angels have a different class of shares altogether. You shouldn’t be comparing to them at all. They will get some money in average situations while ESOPs are only worthwhile if it keeps doing well and growing

Sherlock007
Sherlock007
TCS9mo

Take cash bruh

OldReform
OldReform

Haha I wish bro. But kya karein

Sherlock007
Sherlock007
TCS9mo

Kare wahi jo man kare...esops are hoax at startup.

Decide judiciously

LargeTwig
LargeTwig

It is a equivalent to a tissue paper unless the company has successful exit. The chance for this is 1 percentage

OldReform
OldReform

I feel even less than 1 percent.

Learningmind
Learningmind

Interesting profile.
What would you prefer
X ESOPs vs Y cash? X, and Y can be discussed but assuming in a comparable range

OldReform
OldReform

I would prefer more cash now. But again depends on the founder pedigree.

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NeatFrame72
NeatFrame72Stealth12mo

Value of ESOPs in early stage startups?

Hello guys, I would want to know what is the benefit of getting ESOPs in an early stage startup? The startup has a great team and working on a promising product. I have been offered a package with somewhat lower fixed component and s...

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user

The ESOP is a bit of a blind bet. It's paper money that can get you a windfall if all goes to plan and executio...

Joydeath
JoydeathStealth9mo

Got ESOPs. Stay or not?

I'm currently a front end dev in an early stage startup, been more than 1.5 years here, joined as a UI dev took up frontend. I've just got ESOPs and wanted to know what do people think. Not thinking of switching right now cuz recession, ...

Spkvert
SpkvertPiqyu22mo

ESOPs or SOAPs??

What's the value of your ESOPs when allotted to you and their worth now? Or they just melted like soap?

Eyeswideopen
EyeswideopenUnacademy9mo

"ESOPs made me rich af"

Where did you work and how much money did you make?

Asking as it looks like a lot of promise of ESOPs and wealth creation has failed employees in this bloodbath slow growth, layoffs, and job changes.

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user

I have had ESOPS in 2 companies #1 - company got acquired ..I got 45 Lacs IN ESOP ...thats 1.5X of my last annualize...