Currently EM at FB(~500k TC). Offer to be director at a series B startup going for seriesC in Jan. They have been raising money consistently and are at 250employees. Comp offer: 200k base, 80k options at strike price of $1. Company has raised 50M so far Will be leading a team of 45ppl, so will be getting more of that experience. Looking to take it but never worked at a startup. 2yrs at FB and overall 14yrs YOE Appreciate any insights
What's their liquidity preference, if any? Preferred share price? Valuation at last round? When was last round? Any strong factors that would help or hurt company materially since then? Fully diluted? # of Outstanding shares? Are you comfortable enough financially to go from 500k in real money to 200k in real money + 80k options in paper money? Most importantly, which you implied, but do you have confidence in the company leadership, board of directors and the overall market opportunity (both seen and unseen)? Scenario: your shares are worth $15 whether through acquisition or IPO (putting company value at 15 x shares outstanding) in 4 years giving your shares a value of $1.2m/4 = $300k/year. With insight into when the last round was raised, at what valuation and how many shares are outstanding, you/we can form a picture of growth potential.
$15 is right number to model regardless of above. All this talk about % outstanding is just noise. 80k x $15 is a realistic IPO price. 4 years is generous. Average is 10. IPO market just soured. Don’t go to startups for money.
You do realize there are stock splits and reverse splits that could make any stock $15/share right? Think about a realistic but optimistic future exit, then factor in your % ownership after future dilution. This will help you understand how lucky you’d have to get to reach $500k total comp at a startup.
Go to startup, learn to manage 45 people and come back to us as M2
Will you guys hire OP back as M2? Or downlevel because his Director experience was at some startup? If OP is good enough to get the gig, and good enough for you to re-hire, why don’t you just offer to promote them to M2 and just retain them?
I would have an advantage when interviewing again but they cannot and should not promote me just cause I have another offer. I am supporting 11 folks now and probably good enough to prove that I am fit for M2 in a few years
Became M1 about 1.5 yr ago. My guess is you are cause if I can become M2 here in ur or less, why would I leave? I thought about that and main predicament currently is that hiring has slowed down and I get to learn about managing s bigger team and learn some of that which I would not be able to do so at FB in next 1-2yrs
What were you before M1 for 6 months ? I believe you have total 2 years in FB. Got E6 to M1 in 6 months ?
E6 to M1 might be a lateral move.
Whats their valuation, what percentage of the company is 80k shares? Hard to tell whats that worth