can someone explain why startup options have nonzero strike price
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Ah gotcha I misread.
yeah, to give a toy example, if ACME prices equity at $1, and you exercise later on at $5, then the yellow chunk of *income tax* goes away assuming that FMV = $1 at grant time. when you sell at $10, you only pay cap gains on the $9 gains. this all relies on the 409A exemptionpic.twitter.com/HThWscKQWT
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though I wonder if there is any chart of "post-money" valuation at time of raise vs 409A valuation same quarter. IME 409A is gamed suspiciously low.
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