What happens to your stock options when a startup is acquired?

A company can sell for a large amount and still produce a small employee option payout if preferred shareholders receive proceeds first.

The useful question is how much value is left for common shareholders after preference and transaction terms.

Your documents may treat vested options, unvested options, acceleration, and replacement grants differently.

Grantwise focuses on the economic model, but your actual treatment depends on the plan documents and acquisition agreement.

Acqui-hire outcomes are common enough that they deserve a place in the model. They show whether your grant has value if the company sells for talent or survival rather than breakout growth.

That downside does not predict the future, but it stops you from evaluating the offer only through the IPO case.