Series C startup equity
What's a reasonable amount of equity for a SWE at a Series C startup? Is 0.15% good? I have 9 yoe. Valuation between 70-80mil. Most recent raise was in 2019, total funding raised from all rounds is around 40mil. Looking to IPO in 1-2 years. 60-70 employees. Coming from Uber, the value of the equity seems pretty low but I figured maybe Uber is an outlier and I can't value startup equity the same way.
How and when does this equity become actual money for you?
Depends on the most recent raise and the numbers of employees. If it's well funded, growing and has 200 employees, hope you get one basis point. If they are offering you .15% that seems like a ton for a company that raised a C round. They should be looking to exit by or before you become fully vested.
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Seems fair. They're aiming to be a unicorn so that stock will need to 10 for the investors to be really happy. But based on the raise, they will probably need to double their valuation in a liquidity event before you see any cash.
With a valuation of 70-80 mil, I doubt they will go IPO in next few years unless the company grows exponentially and is a rocket ship. With 40 mil raised money, the valuation doesn’t seem attractive. Ideally before IPO, there is a path to profitability and self sustainability. Is it a b2c or b2b product?
Not gonna IPO at this low valuation. What’s their QoQ revenue growth?
Feels kinda lowish, only 120k of options.
Yep. Not even counting the cost to exercise. If the company grows 5-10x then the equity will be good, and I can see that. But even then it will just be "competitive" against a more established company or unicorn, not a lot better. So there's a lot of downside (if the company does not 5-10x), but the upside is unlikely to beat joining a bigger company. That's why I'm asking here if this is normal.
Raised 40M for a valuation of 70-80M? That must be a desperate attempt to survive. Stay away
This startup is clearly giving away too much equity to investors. Shows weak business model. Avoid IMO.
.15 is too high for Series C. This percentage is usually for series A or Series B if headcount is less than 100
Valuation of the startup please
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