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
No I think before dec 2014 their price was under $5. The dec raise increased the valuation buy huge.
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.
Dear God
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.
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.
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.
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.
Exactly, risk/return ratio aren't looking good for late stage/high profile startups
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
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.
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.
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.
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?
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
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
$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.
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Uber switched to RSUs in early 2015, with preferred share price of $33, not $5. You’re off by a large amount.
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/
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?