Questions to ask before accepting a startup equity offer

The option count is only the numerator. To understand ownership, ask for the fully diluted share count or the exact ownership percentage represented by the grant.

If the company will not share either number, you cannot responsibly compare the equity to salary, risk, or another offer.

Many option grants have a short post-termination exercise window. That can force you to either pay the strike cost quickly or walk away from vested options.

A longer window does not guarantee value, but it gives you more time to make a considered decision.

If investors have a large preference stack, a medium acquisition may leave little for common shareholders. That does not make the offer bad, but it changes the downside case.

Ask how much preferred capital sits ahead of common and whether any rounds have multiples or unusual terms.