simple question about equity negotiation

Stryker / Eng JBWD10
Sep 1, 2018 9 Comments

Negotiating with a Google bet. I have a competing startup offer. Google bet also gives stock options so they are similar in that regard. When I told the recruiter my other offer I told him the equity value as the
# of stocks x (latest funding round value - exercise price)

Is that how you communicate the equity or do you just ask for the # of stocks x (latest funding round value)

The difference in this case is 30% so I am wondering if I shot myself in the foot.

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TOP 9 Comments
  • Stryker / Eng JBWD10
    OP
    Please share your experience if you have negotiated stock options
    Sep 1, 2018 1
    • Sorry I don't, if you were asking me
      Sep 1, 2018
  • Stryker / Eng JBWD10
    OP
    Well I guess I have to assume a certain growth rate for both companies and then compare the value
    Sep 2, 2018 0
  • Stryker / Eng JBWD10
    OP
    So if company A gives 100k and company B gives 200k worth options where worth is calculated as
    # of stocks x (latest funding round value - exercise price)

    then you are saying the current worth is not comparable and it all depends on future growth rate
    Sep 2, 2018 0
  • LinkedIn / Eng ::;::;::
    There’s no answer to this question. Comparing stock options of startups is like comparing apples to oranges. Every startup is different, and startups are different from public companies.

    If a startup grows 10x while the other grows only 3x, then the 10k difference in their offers won’t matter.

    Pick a startup based on their potential upside, not based on current offer.
    Sep 2, 2018 0
  • Stryker / Eng JBWD10
    OP
    Can someone answer this please
    Sep 1, 2018 0
  • Stryker / Eng JBWD10
    OP
    Just asking generally. I would think this would be a common question that anyone will have
    Sep 1, 2018 0
  • Stryker / Eng JBWD10
    OP
    I know but I am just wondering when you tell recruiter that you got 100k worth ISO's do they give you 100k worth ISO's at face value or do they also subtract exercise price from it?
    Sep 1, 2018 0
  • The true value of the equity is the one - exercise price, so you're not wrong there. You'd be inflating the value if you didn't - exercise price but that wouldn't be truthful
    Sep 1, 2018 0