Series C startup equity

Uber / Eng HvWK68
Nov 15 17 Comments

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.

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TOP 17 Comments
  • New excelll
    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?
    Nov 16 4
    • Microsoft / Other : 🐧
      This, don't assume IPO, even in the long run.
      Nov 16
    • Uber / Eng HvWK68
      OP
      B2B, cash flow positive from subscription growth but not quite profitable.
      Nov 16
    • Thumbtack / Eng bgse43
      40m raised and 80m valuation doesn’t sound like a good balance either
      Nov 18
    • Google jokil
      Every startup these days will tell you some non-GAAP metric that implies they will be profitable any day now. Don't believe it so easily.

      +1 to the observation that this startup is overcapitalized. Consider the investors. Are the lead investors from top VCs? Are the investors from previous rounds doubling down?
      Nov 18
  • New m349830
    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.
    Nov 16 2
    • Uber / Eng HvWK68
      OP
      Updated post
      Nov 16
    • New m349830
      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.
      Nov 16
  • Deloitte / Consultant
    kqb291

    Deloitte Consultant

    PRE
    Deloitte
    kqb291more
    How and when does this equity become actual money for you?
    Nov 15 2
    • Deloitte / Consultant
      kqb291

      Deloitte Consultant

      PRE
      Deloitte
      kqb291more
      I never understood this...
      Nov 15
    • Uber / Eng HvWK68
      OP
      Updated post
      Nov 16
  • Facebook yolosamba
    Feels kinda lowish, only 120k of options.
    Nov 18 1
    • Uber / Eng HvWK68
      OP
      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.
      Nov 19
  • Airbnb eUds59
    Valuation of the startup please
    Nov 15 1
    • Uber / Eng HvWK68
      OP
      Updated post
      Nov 16
  • Airbnb fKdq61
    Raised 40M for a valuation of 70-80M? That must be a desperate attempt to survive. Stay away
    Nov 19 0
  • Nutanix
    🤡 Joker

    Nutanix

    PRE
    VMware, Apple, Cisco
    🤡 Jokermore
    Not gonna IPO at this low valuation. What’s their QoQ revenue growth?
    Nov 17 0

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