It's generally bad for the company as a whole. Liquidity erodes the 409A discount[1], which then makes other grants (either future or existing, one way or another) less valuable. This is a pretty classic case of local vs. global optima, like in the prisoner's dilemma.
If you're interested in startups, I'd look for founders who 1) give you the maximum exercise window (10 years with ISO->NSO conversion if you leave), 2) offer early exercise, and 3) support coordinated secondaries where the folks who want it can get some liquidity, without mucking things up the way a free-for-all can.
If you're interested in startups, I'd look for founders who 1) give you the maximum exercise window (10 years with ISO->NSO conversion if you leave), 2) offer early exercise, and 3) support coordinated secondaries where the folks who want it can get some liquidity, without mucking things up the way a free-for-all can.
1. https://www.sethlevine.com/archives/2018/08/whats-a-fair-409...