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?

10mo ago

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BubblyNugget

Stealth10mo

most start up wont list

JazzyBagel

Stealth10mo

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

BubblyNugget

Stealth10mo

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

BubblyKoala

Stealth10mo

ESOP value has following risks

Company growing sizeably and being valuable
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

JazzyBagel

Stealth10mo

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....

BubblyKoala

Stealth10mo

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