- Is there any significant disadvantage receiving stock options vs. shares in a new startup?
- What could be the excuses for not giving shares but stock options and would it be reasonable to insist on shares?
Background: I may be joining a fresh but fully funded (pre series A) startup. I would be employee #5. I would be fully committed and invest 100% of time. Hence I would expect equity (like 0.5%-1%?) but I think I heard somebody talking about stock options. The latter would not motivate me too much to work in a startup but that's just a feeling so I wonder if there are actual disadvantages of stock options vs. equity.