That’s why many big VCs now never invest if that startup release tokens. Some need to sign agreement that they never tokenizes. If you are a good project with good money flow & profit, why do you need to tokenize?
As a candidate/employee: Consider what the company does and why. If its purpose is aligned with yours, it may change how you value the offer as:
- You will be there not only for money, but for a higher purpose, too
- Which means you will very likely stay there longer (possibly much longer)
- Which in turn creates more options for cashing out, too
- It also should reduce the odds of you being let go (as even in the case of layoffs, people who are aligned with the mission should have better chances)
So, as long as it may seem purely a monetary consideration, I would first look at the intangibles.
And if that's just a purely capitalistic exchange (my time for your money), then ask yourself about your risk acceptance levels. In the US, there are jobs that offer a better expected value in terms of compensation, i.e., they'd either have a bigger part (or entirety) of compensation in salary, or better odds on vesting/cashing on the equity.
You completely ignored an alternative to IPO and trade sale: dividends. A private company can distribute profits to shareholders. The company can lend its employees to fund buying their options, then recover the loans through keeping a percentage of annual or quarterly dividends until the loan is paid off. Not the same immediate cash flow as IPO or trade sale, but significant liquidity without loss of ownership position.
That’s why many big VCs now never invest if that startup release tokens. Some need to sign agreement that they never tokenizes. If you are a good project with good money flow & profit, why do you need to tokenize?
As a candidate/employee: Consider what the company does and why. If its purpose is aligned with yours, it may change how you value the offer as:
- You will be there not only for money, but for a higher purpose, too
- Which means you will very likely stay there longer (possibly much longer)
- Which in turn creates more options for cashing out, too
- It also should reduce the odds of you being let go (as even in the case of layoffs, people who are aligned with the mission should have better chances)
So, as long as it may seem purely a monetary consideration, I would first look at the intangibles.
And if that's just a purely capitalistic exchange (my time for your money), then ask yourself about your risk acceptance levels. In the US, there are jobs that offer a better expected value in terms of compensation, i.e., they'd either have a bigger part (or entirety) of compensation in salary, or better odds on vesting/cashing on the equity.
IPO isn’t the only finish line, sometimes it’s just a detour with better PR.
You completely ignored an alternative to IPO and trade sale: dividends. A private company can distribute profits to shareholders. The company can lend its employees to fund buying their options, then recover the loans through keeping a percentage of annual or quarterly dividends until the loan is paid off. Not the same immediate cash flow as IPO or trade sale, but significant liquidity without loss of ownership position.
Great. Some of the most profitable companies such Odoo is still privately held.