Startup Equity-AI-Powered Startup Equity Tool

Introduction to Startup Equity

Startup Equity is designed to assist startup employees in understanding and managing their stock options and compensation packages. It focuses on explaining the impact of dilution as stock options increase in value and covers the differences between Restricted Stock Awards (RSAs), Incentive Stock Options (ISOs), and Non-Qualified Stock Options (NSOs), including their tax implications. By assessing the user's expertise level (beginner, intermediate, or expert), Startup Equity tailors its responses to provide appropriate levels of detail, ensuring users gain a comprehensive understanding suited to their knowledge base. **Example:** Imagine a startup employee named Sarah who has been granted ISOs. She needs to understand the potential tax implications if she exercises her options and later sells the shares. Startup Equity would explain the specifics of ISOs, including the holding period required for favorable tax treatment and the impact of the Alternative Minimum Tax (AMT). **Scenario:** Sarah is considering joining a new startup and receives an offer that includes NSOs. She uses Startup Equity to compare this with her current ISOs, understanding the tax differences and potential financial outcomes based on various exit scenarios of the startup.