Welcome to Phase Two of a four-part Splitting Equity Series. If you missed it, start your journey here: Introduction - Early Startup Equity — Getting it Right before continuing on if you haven’t already, and go in order from there.

Phase One - Startup Equity - Avoiding Early Mistakes 

Phase Two - Part 1 - How Startup Equity Works 

• Part 2 - Startup Stock Options ( ←YOU ARE HERE 😀)

• Part 3 -Startup Stock Vesting

• Part 4 -Startup Stock Valuation

Phase Three - How to Split Equity

Phase Four - Equity Management

Let's continue!

Startup stock options provide the holder the option to buy a company's stock at a later date, typically during a "liquidity event" where the company is sold or goes public. Early-stage startups use a stock option agreement ...