Step one: understand your deal. When your hiring manager -- the founder -- breathlessly tells you "FIFTY THOUSAND SHARES" you should respond with these questions:
--What fraction of the company's outstanding shares is that?
--How many of those shares are some kind of preferred shares?
--What was your premoney valuation in your last financing round, both total and per-share?
--How much money did you raise, in return for how many shares?
Or you can ask to see the capitalization table, which if not fraudulent, will answer these questions.
Then you will have some idea of the potential value of the shares you have.
These are reasonable questions for you--for any investor--to ask. They are asking you to invest the one thing they can't pay back: your time.
What if the hiring founder doesn't want to answer these questions for a mere underling such as yourself? In that case, assume a potential share value of zero and make your decisions accordingly.
> What if the hiring founder doesn't want to answer these questions for a mere underling such as yourself? In that case, assume a potential share value of zero and make your decisions accordingly.
That’s your cue to walk: it won’t be the last time they try to scam you and you’ll never be less committed to staying at that company.
--What fraction of the company's outstanding shares is that? --How many of those shares are some kind of preferred shares? --What was your premoney valuation in your last financing round, both total and per-share? --How much money did you raise, in return for how many shares?
Or you can ask to see the capitalization table, which if not fraudulent, will answer these questions.
Then you will have some idea of the potential value of the shares you have.
These are reasonable questions for you--for any investor--to ask. They are asking you to invest the one thing they can't pay back: your time.
What if the hiring founder doesn't want to answer these questions for a mere underling such as yourself? In that case, assume a potential share value of zero and make your decisions accordingly.