| Several comments allude to liquidation preference / stock-participation for preferred stock holders. While both of these terms do bite into the common share stake, as others have pointed out, their effect is model-able; so you can see where you stand under different exit scenarios. Ask your employer, or get access to something like Pitchbook, to find out: 1. The amount of $ raised from investors, along with the % of equity in common vs preferred shares. 2. The liquidation preference (1.0x is common) for preferred. 3. Whether the preferred stock participates (not doing so is common). 4. What % of common equity your grant represents. You'll then be able to draw a payout diagram (like this[1], written by Andy Rachleff) showing how much you'll make for different exit prices. Be aware that under some complexities, like the fact that later rounds will cause dilution and that certain exit scenarios scenarios (like acquisitions) may trigger a different liquidation preference for preferred stock. [1] https://blog.wealthfront.com/wildly-different-financial-outc... |