Quote:
Originally Posted by cdcox
I had some stock options that I received as compensation for serving on the advisory board of a start up. I exercised them a couple of years ago. It was a pretty small investment, but the company has attracted $75M in series C investment since then. The start up still isn't generating any revenue, but the paper increase in the stock value would win this thread by a large margin. The chances are this will be a boom or bust investment: it will either grow significantly more than what it has so far or it will be worthless in a few years.
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Not that I do alot of VC work, but good luck. The number of busts for every boom is depressing. Even companies that eventually take off sometimes see the early investors get killed. The dread downrounds and dilution that wipe out all that came before the new money (except for management).
Why in the world did you exercise them, unless the option period was about to lapse? Make the 83(b) election, but otherwise, wait and cross your fingers is the normal rule.
But good luck!