[solatic]

If employees get stock options and decide to exercise on exit, they count against the 500 unaccredited investor limit that would trigger reporting requirements. So companies that issue stock options do have an outside risk that enough employees will exit, exercise their stock options, and trigger a reporting requirement.

[yieldcrv]

yeah, that's why those companies tend to offer liquidity strategically to lower their employee investor count

[kooshball]

if an employee exercise options (but stays at the company) does that still count as one of 1000?