Why you only have 90 days to exercise your options when you leave a startup — and why that's changing
TL;DR
Carta's foundational explainer on why 90-day exercise windows exist and why they should change.
Foundational explainer from Carta on the origins and implications of the 90-day exercise window. Explains how IRS regulations designed for a different era created this standard and argues for extended windows as the fairer alternative.
Key Findings from Carta (2016)
- 90-day window originates from IRS ISO regulations
- Extended exercise windows are feasible for companies to offer
- Short windows benefit no stakeholder in the modern startup ecosystem
- Movement toward extended windows was beginning in 2016