[danielweber]

> First, it's exceptionally unusual to see anything more than a 1x liquidation preference (i.e. investors receive their initial investment back before anyone else gets paid) among well-funded companies

I've had options zero-out because the company, after investing with absolutely no preference given (which was part of what induced me to join), they took another round with preference funding at greater than 1x.

[emagdnim2100]

By "zero out," do you mean they were previously valuable and then dropped below their strike price after accounting for the > 1x preference? That sucks and I'm sorry it happened to you. It's still pretty unusual though.

Curious to hear - were any of the following factors in play: (i) the company was struggling to stay afloat, (ii) the company was located outside SF/NYC, (iii) the company had less-experienced founders?

[danielweber]

The company was sold and my purchased shares were worth $0.00.

The founders had secured, until I joined, funding coming in without any preferences at all, or so management told me repeatedly. I don't know when that changed, or maybe management was lying to me all along.

[acjohnson55]

Might be worth suing?

[mikeyouse]

Another data point, I worked for a biotech that had to take a down round with 3x participating..