This is really a spreadsheet problem. Figure out the expected value of those stock options. Consider:
1) The odds that you will work there long enough to fully vest. This depends on you, but there are a lot of factors outside your control such as layoffs/crappy management/etc.
2) The odds that the company will be sold at a high enough valuation to convert everybody to common stock. If it isn't (and it probably won't be), your exit money will be less (perhaps much less) that whatever it would have been on a fully-diluted basis. This would be explained in the term sheet the founders signed with the investors and really should be shown to you before you get hired.
3) The odds that the company will have any kind of exit.
Bottom line, unless google is the one who buys you out, you ain't gonna be driving a Porche after the startup you work for gets bought out. The odds of you even breaking even and getting anywhere close to "100% market" is pretty small. Either tell the startup you want market rate and no options or take the 130% company--stock options are a suckers bet.
1) The odds that you will work there long enough to fully vest. This depends on you, but there are a lot of factors outside your control such as layoffs/crappy management/etc.
2) The odds that the company will be sold at a high enough valuation to convert everybody to common stock. If it isn't (and it probably won't be), your exit money will be less (perhaps much less) that whatever it would have been on a fully-diluted basis. This would be explained in the term sheet the founders signed with the investors and really should be shown to you before you get hired.
3) The odds that the company will have any kind of exit.
Bottom line, unless google is the one who buys you out, you ain't gonna be driving a Porche after the startup you work for gets bought out. The odds of you even breaking even and getting anywhere close to "100% market" is pretty small. Either tell the startup you want market rate and no options or take the 130% company--stock options are a suckers bet.