Paper money value

Twitch 90201
Jul 2, 2018 34 Comments

Hey fellas grinding away at AirBnB, Uber, Lyft, Pinterest and others previously in similar companies. What do you do with your vested RSUs/options worth paper money? Is it worth the wait till these companies IPO or get acquired?How do you buy house or any property with this paper money?

Folks considering joining or that recently joined, how do you evaluate offer of a $100k RSU of paper money compared to a liquid stock at say Amazon, Google or Facebook?

Curious to learn, not trolling.

TC: $200k

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TOP 34 Comments
  • Pinterest ctMu21
    I just left Pinterest for FB and am still evaluating if the paper money was a good move. Honestly I’m going to say no. If you’re very early on then maybe, but there’s lots of academic research that shows that in pre-ipo land the rewards disproportionally favor investors/early hires/senior leaders and the bulk of the risk is borne by employees.
    Jul 2, 2018 0
  • Amazon lasgjhf4fg
    Can someone please explain what paper money is?
    Jul 2, 2018 22
    • Mesosphere onsie
      ^^ Again what you are saying doesn’t make any sense. I don’t know of many startups that don’t start offering RSU’s by series C. Can you tell me examples of some? If not, I guess what you are trying to say is if you take less risks that leads to lower reward that is joining a late stage startup with RSU’s.
      Jul 21, 2018
    • Facebook Poswcoiner
      I am sure some do it although i don’t see why a company would do this to employees, it’s less attractive. I have heard stories of companies not having any rules against selling early on and then later asking employees to sign that they won’t sell but I wouldn’t waive that right if I had the chance. I think pre ipo companies should do more to facilitate selling the pre ipo / public stock or RSUs since cost of living is so high now and for most it’s a lot better to just work for a public company.
      Jul 21, 2018
    • Facebook Poswcoiner
      Also RFR does not restrict a sale it simply gives the company the opportunity to the company to buy the stock at whatever price you found a seller for if they want. A friend of mine made out like a bandit when he worked for a company that didn’t facilitate a secondary but he found a buyer and lawyer to work the deal and company bought back the stock. Company ended up going down in value a lot and he sold for about 3x the price others did
      Jul 21, 2018
    • Pinterest PfU7s
      That's true about RFR. They can also just limit your ability to sell. Look at companies like Uber, Pinterest, Airbnb, etc.
      Jul 21, 2018
    • Databricks
      databricks

      Databricks

      BIO
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      databricksmore
      Mesosphere bro. We are at post series D and still offering options. Lol
      Aug 2, 2018
  • So comparable offers from Lyft and Google will look something like this(p.a.):
    Lyft- cash 190+ 20, paper 200k
    Google - cash 180+28, stock 125k.

    The gambles not bad. The cash component itself seems enough to live reasonably in the Bay area. Paper money has a better chance of longer term returns.

    Does that calculation break down somehow? Yes I understand that Lyft may not survive post IPO. But what if I substituted it with your pet 🦄 - Airbnb, Uber, Pinterest.
    Jul 2, 2018 0
  • Pinterest PfU7s
    I only accept paper money if it is significantly more than I could get from liquid money.

    Example :
    FB may pay me $200k base + 20% bonus + $150k/yr RSUs. Total comp is $390k if I get the standard bonus not counting stock appreciation. With max bonus multiplier for myself and FB my bonus could be $180k, although that's rare. Most likely my TC is actually up to $450k if I do a good job.

    From a pre IPO company, the package may look like $220-250k cash with no bonus multipliers + $600-800k RSUs. What is that stock worth? Who knows. But unless it crashes I'll hopefully be ahead.
    Jul 21, 2018 8
    • Pinterest PfU7s
      I did with Pinterest and uber
      Jul 21, 2018
    • Facebook Poswcoiner
      What level are these offers?
      Aug 4, 2018
    • Pinterest PfU7s
      L6
      Aug 4, 2018
    • Facebook Poswcoiner
      So the offers had 2.4-3m stock?
      Aug 4, 2018
    • Pinterest PfU7s
      Yes
      Aug 4, 2018

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