Startup Stock Options – Why a Good Deal Has Gone Bad
It&#x27;s bad for most people, but when it&#x27;s good it&#x27;s really good.<p>I was lucky to join a now unicorn as one of the first few dozen employees a few years ago. I forward exercised with a few thousand out of pocket (section 83b) an equity grant now worth around $1.5m. Because I forward exercised my options at a low valuation I didn&#x27;t have to worry about paying taxes if I exercised at a later time when the company&#x27;s valuation grew. It also meant that my gains became long-term capital gains, and thus taxed lower, as soon as possible after I vested each month.