Valuing Those Pesky Stock Options

Valuing Employee Stock Options – Jeff Bussgang

I receive many questions from my students and other startup joiners regarding how to evaluate the value of the stock options they are being offered. There is surprisingly little written about this topic, so this post will hopefully be useful to folks interested in answering this question. Continue reading on Seeing Both Sides.

Notes On This Article

If you can’t get anyone to articulate the four key variables mentioned by Jeff Bussgang, head for the hills. From an equity perspective, early employees take on disproportionate amounts of risk when they accept comp in the form of options. Unless an exit is right around the corner, or you can measure your ownership in whole percentages; focus on getting more cash.

– Rob