[toast0]

Try to get the real scoop. If the corporation isn't very transparent to employees, it might help to exercise at least one share, to have stockholders rights.

It's one thing to be nearly profitable like Amazon was for many years, where current income was going into investment for the future; if a need for profitability arose, investment could be toned down and margins would appear. It's another thing when the current costs are slightly more than the current revenue, but decreasing spending immediately will also decrease revenue immediately. The later situation could be ok, if there's some realistic medium/longer term cost savings or revenue growth plan that is likely to be finished before the money runs out.

Startups that have revenue but not profits are judged a lot harsher in the market right now than they used to be; certainly they're judged harsher than startups with no revenue. If your stock makes your total compensation good/acceptable only if there's a big exit and the required exit is much bigger than is realistic, you're not well compensated -- unless you're getting something else out of it.

[seattle_spring]

> If the corporation isn't very transparent to employees, it might help to exercise at least one share, to have stockholders rights.

Can you elaborate on the benefits of this? I exercised ~10% of my vested options at my 1 year cliff, but I have not received any additional communications. I looked into requesting specifics from the company because they're "A Delaware Company", but apparently the law says that "curiosity" is not a valid reason.

[sjg007]

I would ask a lawyer versed in Delaware case law. I am sure they could give you some reasons. I'd imagine you could make a request for inspection on the grounds of independently (and confidentially) assessing the fair market value of your remaining options to determine if you want to purchase them. I mean that's really why you want to documents right? You want to see actual revenues, contracts etc... If the company balks then you might want to engage a law firm to handle your request (or get a group of shareholders together to do so). Also if the company is not forth coming then that's probably a red flag.

[toast0]

> I'd imagine you could make a request for inspection on the grounds of independently (and confidentially) assessing the fair market value of your remaining options to determine if you want to purchase them.

I think you need to be careful to make the purpose to assess the fair value of your current holdings, as the purpose has to be "a purpose reasonably related to such person’s interest as a stockholder". Assessing the value of your unexercised options isn't in the interest of your current holdings. If they push back on this, "why do you want to know the value, you're not planning to sell are you?, etc", then say you need it for estate planning, which is reasonable enough.