Start up Stock options
If a start up which has raised around 100M is offering 4500 stock as options, what is it worth? How do I calculate $ value of this? I am new to this start up thing. Trying to move to SFO from east coast?
It's worth nothing unless you're absolutely sure they're going to IPO or get purchased. For reference, I got lucky and my company was purchased for over a billion (a Unicorn startup). I had 10K in stock and it ended up being worth about $200K before taxes. But it also depends on how many stocks have been issued
A good guide on how to understand your stock options is at https://a16z.com/2016/08/24 published by a very well known VC
The fact we’ve all bought into options is incredible. An opaque form of compensation where the employee takes the risk. It’s brilliant. We should push for real transparency. Every startup has a token, coin, whatever. Set a strike and give people visibility to market value. Enough smoke screens.
Is it reasonable for a startup to provide details of the total number of shares? If not how can you estimate value of lets say an offee for 5000 share options vesting over 4 years?
If they have not told you what the value is don’t join. You will regret it. They are trying to fool you
Yep. 4,500 at $100M is likely worth a few grand. Sorry. But if you’re junior and this offer is go for the experience. If that isn’t there go elsewhere.