Complex Systems with Patrick McKenzie (patio11) Understanding equity at tech companies, with Billy Gallagher of Prospect
15 snips
Nov 20, 2025 
Billy Gallagher, CEO of Prospect, shares insights from his venture investing background to help employees navigate the complexities of startup equity. He explains the pitfalls of relying on simplistic equity advice and the critical importance of understanding options versus RSUs. Gallagher discusses the nuances of early exercising options, the implications of taxes, and the value of informed decision-making in managing equity. They also touch on the growing trend of tender offers and the impact of startup equity on financial growth and career trajectories.
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Savvy Shapes Real Compensation
- Equity outcomes differ by employee savvy and background, not just grant terms.
- Patrick McKenzie highlights that information asymmetry causes unequal real compensation.
Read Your Offer Letter
- Read your offer letter and equity documents carefully to know vesting and cliffs.
- Patrick McKenzie urges people to verify vesting terms instead of assuming common practices.
Options Aren't Pure Lottery Tickets
- Options are not mere lottery tickets; selection and signals matter.
- Billy Gallagher and Patrick argue company and network quality meaningfully affect outcomes.
