Startup - Stock Options Evaluation
As a compensation, based on fair market value of stock options, how much equity is offered at Startups ? Is there any benchmark ? 50K / 100K / 200 K ? Vesting schedule is standard usually -4 years with 1 year clif n then monthly vesting. Any guidance?
There generally isn't any market for startup equity- so you go by either the 409a price (what the startup is valuing themselves at from a tax perspective) or the preferred price (what the last investor bought in at). Equity is based on how early you get in (funding history/potential of the company) and how senior/needed you are when you get in/ role. There's no like standard amount you should expect at a "startup" generally.
Number of shares * 409a * compounded growth rate over 4 yrs gives you a ceiling .. Also try tldroptions.io
20 M outstanding shares..current value is 4 dollars..10K options offered...40K potential value...Series D so late stage startup
What profile? 80M for a series d seems low valuation. Feels like company isn't doing good for a long time
Director
1. Don't join a company pre-IPO more than 5 years old (zombie firm). 2. Expect a valuation of $10-$15 per share at IPO. Nasdaq requires share prices above $5 always. But since most firms never reach liquidity (IPO or buyout) , estimate share value and divide by 2x - 5x.
Company has been around for more than 5 years...estimated value 500 M +
depends on way more factors than you’ve given. what’s the strike vs preferred price? last valuation? what round/series? liquidity preferences? exercise period? market and growth trajectory? etc