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Fixing the Inequity of Startup Equity.md

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Fixing the Inequity of Startup Equity

by Harjeet Taggar

Article text | HN discussion

Triplebyte attempts to improve exercising startup options by extending the window to 10 years.


  • startup employees usually have 90 days after leaving a company to exercise their options, but many can't afford the tax burden which results in losing the options
  • "This “option extension” gives you more time to exercise your options, which increases the likelihood there will be a liquidity event to help you pay the exercise price and the tax triggered upon exercise."
  • "We also see an outsider’s perspective on this, as we talk to many engineers from non-traditional backgrounds who are based outside of the Valley."
  • "Employees are often either not sophisticated enough to ask about this issue, or are reluctant to ask a company to incur the expense of paying lawyers to draft new and complicated paperwork."
  • "YC will recommend all their startups use these documents going forward. We’re advising Triplebyte candidates to favor companies making this change"