stock in private tech cos ("Unicorns")

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Valuethinker
Posts: 32913
Joined: Fri May 11, 2007 11:07 am

stock in private tech cos ("Unicorns")

Post by Valuethinker » Sat Jan 21, 2017 5:44 pm


DetroitRed
Posts: 175
Joined: Tue May 17, 2011 4:16 pm

Re: stock in private tech cos ("Unicorns")

Post by DetroitRed » Sat Jan 21, 2017 7:15 pm

Thanks for posting. This was very good advice about the issues faced when receiving stock options in private companies.

I saved a permanent copy to the Internet Archive (in case the original posting goes away) - https://web.archive.org/web/20170121235 ... ce=twitter

carolinaman
Posts: 2589
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: stock in private tech cos ("Unicorns")

Post by carolinaman » Sun Jan 22, 2017 6:57 am

The article makes some great points which should force people to assess whether or not to invest in a private company.

I worked for a tech startup for more than 5 years in management role. It was a great experience and I learned a lot and have no regrets. I had a small allotment of stock options. Many others coveted stock options but I did not for many of the reasons cited in the article. In my last year, I met monthly with our bankers reviewing my division's performance and sales forecast. We were always profitable and met our numbers, but the other divisions were losing money. That is why I never exercised my options. I thought the company would eventually go bankrupt as it was losing money. Ironically, it did go public a few years later and made the owners a lot of money. But it fizzled out and was sold off a few years later. Seeing how they did that made me not to ever want to touch an IPO.

Post Reply