Hi Jared, I'd advise you and your team to take a hard look at GIPS (global investment performance standards) and create a similar model for startup equity packages.
Call it whatever, but the standards would have employee friendly terms so that people joining early stage companies would actually get something if the company liquidates.
Little stuff like recruiters need to not say stuff like "we are already valued at X, so that is great"... wut?
Or...
Big stuff like: 7 year option excersize term instead of 3 months. (Gross).
No one who understands the asymmetry of joining a startup would do it. Only people who dont know any better.
This is your opportunity to use YCs power to get people interested again.
The brilliance of the GIPS is that firms cannot be partially compliant and it is 100% optional.
The reason a 10 year excersize window is meaningless on its own is that you cannnot control or know how your share class will be treated after you leave.
You need a set of standards which clearly allows employees to capture value. Otherwise it is all marketing. Smart people will see through that. As they already are.
Per your other comment on CEO ethics - the CFA Institute - GIPS creator, while focused on public equities, has great materials for illiquid alternatives as well.
Call it whatever, but the standards would have employee friendly terms so that people joining early stage companies would actually get something if the company liquidates.
Little stuff like recruiters need to not say stuff like "we are already valued at X, so that is great"... wut?
Or...
Big stuff like: 7 year option excersize term instead of 3 months. (Gross).
No one who understands the asymmetry of joining a startup would do it. Only people who dont know any better.
This is your opportunity to use YCs power to get people interested again.