Ask HN: Should I exercise my stock options?
TL;DR: I'm leaving my job at a pre-series A startup. Is it worth exercising my stock options? It would cost $15k for 2% of shares outstanding.
I'm a long-time HN user posting from a throwaway account -- hoping someone here has experience with this.
More info:
I decided to leave my job as an engineer at a startup. My vested shares amount to 2% of total shares outstanding. Once the company's convertible notes convert to equity, I'll be diluted down to 1.5%. They haven't raised a series A, yet.
My stock option contract stipulates that I must exercise within 3 months of leaving, or the options expire. The cost of exercising is about $15k (vested shares * strike price). My life savings is 60k. I'm 24.
What would you do in this situation? What are some things to consider? Are there ways to exercise without paying until the company exits?
What do most people do in this situation? I'd really appreciate any advice.
Thanks guys