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You forget about taxes. By the time of exit the fair market value of the stock likely greatly exceeds option grant strikes to founders creating a massive tax liability in the form of capital gains. Likely in the hundreds of thousands if not millions of dollars range.


I believe that most founders exercise early when the company is formed and do an 83b. It's the smart thing to do, anyway.


Yes that's an option if they planned well. But there still may be spread.




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