[hiyer]

> A start-up I had been a part of in New York. Where I was the first employee. I had owned equity. They had eventually sold for $350 million.

What happened to the author's equity?

[hn_throwaway_99]

Obviously there is a ton unsaid in this blog post, but I just wanted to answer your question because it's exceedingly common for companies to be sold, sometimes for lots of money, and for common stock (which is what employees hold) to get wiped out. If the startup was sold for $350 million, but it received $350 or more million in funding, the investors get (some of) their money back, and employees get nothing. This happens all the time.

Again, I don't know what happened in the author's specific case, but think it's important to know that lots of startups have exits that can look big on paper but still are a wipeout for common equity.

[KellyCriterion]

Liquidation Preferences e.g.