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.
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?
Please share your experience if you have negotiated stock options
Sorry I don't, if you were asking me
Just asking generally. I would think this would be a common question that anyone will have
Can someone answer this please
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.
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
Well I guess I have to assume a certain growth rate for both companies and then compare the value
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