Uber Stock millionaire

SAP ksYR03
Nov 7 38 Comments

So just to get some sense how startups helps u and at what stage so everyone of us can collectively learn,

Based on my knowledge anyone who joined Uber before dec 2014 (when they had another funding round) the possible RSU price then was 4-5usd/sh.

Assuming someone working in tech joined them as software or product manager then they could have got 300k/4 yr stock comp min.

That means at $5/sh they wud have got 60k shares/4 yr.

If you stay until 2019 that means most folks who join before dec 2014 would have 50-60k shares and total stock value after lockup around $1.8MM pre tax.

Is this the right understanding? What about those who joined after 2014?

In Jun 2014 Uber was valued at $17B. In Dec 2014 it went up to $40B.

So it shows anyone who joined before Dec 2014 would have got stocks at under 5-6 usd/sh.

Thank You. Don’t have to mention ur exact numbers but if folks at Uber/Lyft can help all of us understand the numbers around this, it helps all of us to understand the right time to join startups in Valley going forward.

Thanks

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TOP 38 Comments
  • Amazon
    de5i

    Amazon

    BIO
    Just taking it easy
    de5imore
    You know, Amazon has badges of different color. You start with blue, after 5 years they give you orange, after 10 - red, 15 - purple. Red aren’t too common, and I think I’ve seen only few purple ones here in California.
    Anyways, let’s assume some one with orange badge joining Amazon. It’s 2014 they get 200k in stock which is $300/ share. It’s 667 stocks. Now this stock is $1.2M.
    Let’s imagine red badge. They joined at $130/share. 200k worth of RSUs is 1540 shares. In today’s money it’s $2.8M.
    And I didn’t count base, signups or stocks grants after first 4 years.
    Nov 7 6
    • Amazon
      de5i

      Amazon

      BIO
      Just taking it easy
      de5imore
      Past performance doesn’t guarantee future gains, bruh. Also, it’s not for everyone, we both know that.
      Nov 7
    • Workday / Product tdf
      Basic flaw in that argument is the assumption that people hold on to their vested stocks forever.
      Nov 7
    • DoorDash Bh34567A
      Which probably rarely happens because so many people auto sell to "diversify"
      Nov 7
    • Amazon / Eng OlAl28
      I haven't and won't
      Nov 7
    • Amazon
      de5i

      Amazon

      BIO
      Just taking it easy
      de5imore
      I haven’t either. I’d say most of my colleagues doesn’t unless they are about to buy something but, like a house
      Nov 7
  • Facebook EWuQ41
    Uber switched to RSUs in early 2015, with preferred share price of $33, not $5. You’re off by a large amount.
    Nov 7 4
    • SAP ksYR03
      OP
      Here’s an article in 2014. Uber was valued at 17B then.

      Their preferred share of 33 was in 2015 after they raise another big round late 2014.

      https://techcrunch.com/2014/06/06/uber-1-2b/
      Nov 7
    • SAP ksYR03
      OP
      There u go. Can any @uber employee comment. By Jun 2014 Uber was valued at $17B. In dec 2014 they raised money at $40B that’s when their RSU went to $33.

      So anyone who joined before dec 2014 in my opinion had stock at $5 and not $33.

      Can someone confirm this?
      Nov 7
    • Facebook EWuQ41
      I was an Uber employee, OP.
      Nov 9
    • SAP ksYR03
      OP
      So wud u like to comment how many options were they giving in 2014?
      Nov 9
  • Expedia Group vrblow
    This is the most “valley” post I have ever seen. What if your startup tanks 6 months in? What if your startup decides to not go public? When you decide to join isn’t going to make you the next millionaire.

    Join a startup because you care about what it does and you want to make them, and yourself, succeed. Anything less than that and you’re building the next Pets.com and you’ll go back to your (rented) home with nothing.
    Nov 7 5
    • SAP ksYR03
      OP
      I understand all of that. I am not saying join startup to become millionaire. I am writing this post to get a sense on at what stage is a good time to join if u want to look for money. This all helps us to learn more.
      Nov 7
    • Citrix Systems / Eng ಅವನೌನ ಹಡಾ
      Lol 😂 starts ups are all luck . Imaging ppl joining wework and thinking of becoming a millionaire. I am not trying to demean them or anything. Just a fact. Personally I would join a startup only after I feel I have financial independence for atleast 5 years.
      Nov 7
    • Expedia Group vrblow
      Are you asking how you can recognize when a startup will make a high value exit or go public, before they demonstrate early success?
      Nov 7
    • Microsoft PkachuFace
      Im saying join start up to be a millionaire.
      Nov 7
    • Expedia Group vrblow
      Play the stock market, better odds.
      Nov 7
  • Google obTs71
    Here is simple/rounding math for you: Uber was valued at 17B, now it is valued at 47B. So that <3x increase in your package. Taking into account dilution and the fact that it was options (not stocks), your 300k package is about 600k income over the course of 4 years. So comparable to public companies.
    Nov 7 1
    • Google rAnD0mNam3
      Exactly, risk/return ratio aren't looking good for late stage/high profile startups
      Nov 9
  • Google JzQe48
    Uber was 17B in 2014 and 46B today. Considering dilution for many rounds, this is only a little more than 2x, barely on par with Nasdaq, and inferior to FB, Amazon, or even Google.
    Nov 7 7
    • SAP ksYR03
      OP
      I don’t get this. If let’s say someone was given 300k equity offer at Uber in 2014 and if stock was at $5, it’s 60k shares. At today’s price it would be $1.8M and not just double of 300k.

      If the stock was at $15, then it’s 20k stock. Then it would be at 600k now
      Nov 7
    • Facebook pikapikac
      I don't understand why you're stuck with $5 price. Uber gave out options prior to 2015 and I assume you know how options work. Yes, they made money but like others are saying this ain't much. It's similar to FANG pay. They'll be super rich if their stock price reflected recruiters $100B valuation lies.
      Nov 8
    • SAP ksYR03
      OP
      I am not saying they made money or not. I just wrote this post to get a sense at what stage of company did ppl make money. That’s it. Just to educate myself more on startups and equity.

      I believe those who joined before jun 2014 made some good money than others
      Nov 8
    • Facebook pikapikac
      Sure. I have a data point - I got around 19000 units of stock in early 2018 and this was for L5 and I felt it was lowball when compared to my friends who work there.
      Nov 8
    • SAP ksYR03
      OP
      19k for 4 yr I am assuming and did u end up joining? It u got 19k then folks joining in 2014/15 would have got 50-60k for 4 yrs.
      Nov 8
  • eBay JHNvc
    If you survived Uber from 2014 until now, you likely have battle scars. Probably went through depression, anxiety issues, and more from the stress.

    If you worked at Apple you would have likely have made more money over all.

    I bet if you jumped jobs every couple of years, getting sign on bonuses you still would have done better than Uber.
    Nov 9 0
  • Apptio cloudwind
    One of friends joined Uber in September 2014, he was granted options and strike price is about $15. So I doubt the RSU is $5. It is more likely $15 to $20
    Nov 7 0
  • Google googa
    Someone I know told me that in 2014 stock price was less than 5 dollars.. I think this was prior to June 2014.

    I don't know how many options Uber was giving at that time.. it could be 100k or 500k or 1m I have no idea.
    Nov 7 1
    • SAP ksYR03
      OP
      See that’s what I am saying. Ppl are wrongly assuming Uber stock was at $15 in 2014

      I believe it was way less. Around $5. If that’s the case then a person getting 300k offer in equity would be easily sitting at $1.8M.

      I am not arguing if it is more or less. All I am saying is that’s the diff in timing when u joined. I know in late 2015
      The RSU was around $29/sh.

      Can some Uber folk not reply and clear this? I mean no one is asking u to share ur comp. but just what the RSU price was in 2014 won’t hurt u to share?
      Nov 7
  • SAP ksYR03
    OP
    Found the article. It says in jun 2014 the price/ sh was $15 and a year earlier it was $3.56

    https://www.cnbc.com/2019/11/05/ubers-lockup-expiration-may-be-muted-because-many-shares-are-in-red.html
    Nov 7 2
    • Google googa
      Yeah if you joined before June 1
      2014 you got strike letting of 4 dollars options. I just don't know how many they were giving out at that time
      Nov 7
    • Google JzQe48
      $3.56 was the valuation of series C. Offers are usually based on hyped valuation which is higher than that.

      Nevertheless, don't forget that in 2013 FB was ~$25.
      Nov 8
  • Splunk e74hf
    That's not how private stock options are calculated. If that were true, I would have gotten something like $5,000 over four years when i got hired at the startup I was at. It's about % of ownership.

    Hint: I'll say that is was worth less than a million dollars when it popped.
    Nov 7 1
  • SAP ksYR03
    OP
    No I think before dec 2014 their price was under $5. The dec raise increased the valuation buy huge.
    Nov 7 0

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