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How to think about getting a % equity in startups? Eg if a startup wants to give me 1% equity, does that get diluted over time? If there’s no IPO is there a way to convert the equity into cash?

1. Yes, it will get diluted in every funding round to 1% * (1 - x%) where x is the new investors’ equity share.2. Yes, if the startup does periodic buy backs. If at all this happens, there will be a cap on % of vested shares that you can sell.

Pretty sure if there’s no ipo you don’t get cash. It’s more of a gamble. I think you can always try and sell your equity to someone else and they buy into the idea of eventual ipo but there may be stipulations?

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1. Yes, it will get diluted in every funding round to 1% * (1 - x%) where x is the new investors’ equity share.

2. Yes, if the startup does periodic buy backs. If at all this happens, there will be a cap on % of vested shares that you can sell.