What do people think of these guys? Got an offer from them but they are giving deadline for the offer like as if I was fresh out of school. Also they are claiming they will be valued at 60b in 2 years since softbank already values them at 3b. They have a plane as well to do freight. I think their business has 0 competitors and over 5t market. Their equity offer is super low but they are claiming it will be 10x in 2 years... confused
According to the recruiter they are where uber was in 2012. Hyper growth
I think Flexport is actually in a great position for real growth backed by actual business opportunities. That said, any offer based on hopes and dreams is fucking you a bit.
So they will grow 5x instead of 10x?
"SoftBank already values us at" is usually a pretty strong indicator you should take the number that follows and divide it by 10.
I like their humility, but that comes at the cost of not paying you :). They like to do their bullshit valuation projection with new candidates. Know that it’s all shit unless they can turn a profit
Their revenue is 500m dude.
Wework revenue is $2 bil dude
Ask for 5x rsu
Offer details?
From the post and responses it sounds like you have made up your mind OP. Is that correct? What do you want help with? Typically the advantage of going to a smaller startuppy thing is that you get a bigger potential upswing by locking in good equity. The downside is the risk around existence in the long run. If you take the risk as well as lower your equity you're kind of losing on both ends. Just two cents.
Sales hype. I bet the recruiter also told you it was one of the best places to work, has a world class team, and either top perks or they told you one of their other top 5 percentile or puffed up benefits more than compensates for low perks. Life lesson: the last person you should expect to be honest and balanced is the person who wants you to do something. That is pretty much the only person you can always expect to be dishonest and never be wrong.
Precisely what he said
Yeah I've had like 12 or so in person interviews in my career now. I've seen it over and over again. What I'm wondering now is whether the great sales artists are worth being around. After all, they are the most likely to attract a big talent pool, build a great team, and generate success. Honest and straightforward people have difficulty doing that.
Let me paste my previous comment about flexport with with some points why the valuation and market size estimates do not make sense: There are ~300m seaborne container trips a year at ~$2500 average price in an industry that is not covering its WACC. You have huge capex, and comoditized product with margins on the each step of value chain being razor thin at best. As an intermediary your max reach is probably 20% of the price of max 50% of the market (rest is sourced through liners directly). Your profitability at best would be 10% as you complete with 20+ others. With EBIT multiplier at around 8, it gives your market a total valuation of 64b and very slow expected growth (due to economic slowdown and decreasing GDP/trade multiplier). Flexport valuation is at 5% of that. You still have a long way to reach this market share. And you don't have relationships with customers that liners, FFs and 4PLs have. On top of that, the competition is fierce and everyone is investing in technology.
Yawning another Wework in play.
I doubt it. Freight over air and ocean is an untapped market
It's a 5t market and growing.