If you control unvested NQSO and your company offers an early exercise provision, you can exercise and hold your NQSO, file the requisite 83(b) election, pay the tax due now, and start your holding period for LTCGs. This is particularly attractive if your NQSO have a very low strike price and a FMV that is equal to or near the strike price. Combining these factors, you may be able to exercise your options, pay little to nothing in tax, and begin the holding period for LTCG and QSBS (if applicable).
