8000 shares?
What does it mean if a startup is giving me 10,000 shares? what type of questions do I need to ask the recruiter?
Need to know strike price, valuation, and share volume
Only join if they’re Uber shares
Incredible startup to give you 2000 extra shares in the span of a few minutes. OP must have 14000 now.
it means if they go public, you’ll have that amount of company stock
Not always. There will be liquidations. In fact that OP can get literally a dollar or two. That’s perfectly legal.
what u mean liquidations another possibility is acquisition but similar to ipo or swap for different stock
Number means next to nothing, since each share can be practically any value they want. Percent-of-total is way more interesting, along with any terms on how any future dilution affects you.
Make sure they give you paper versions so you get real toilet paper you can use
-What is the value of each share, as per latest company valuation? -Is it the actual share of the right of the company to give you the share? Also ask: -What is the stage of the startup (series A B C etc) -What are the KPIs that investors have said the startup needs to meet to get the next round of funding -What’s the runway (how long till money runs out) -What’s the path to liquidity, and by when do we hope to get there -How open are the founders to ideas by engineers? Or is everything run by the marketing department? (You should meet them to figure it out.) -Only join if the CEO strikes you as whip smart and extremely methodological. -Consider the expected value of your shares. For example, at Series A you may only have a 10% chance of liquidity at that valuation. So multiple your share value by 10% when computing TC.
Expect those shares to be diluted into oblivion before liquidity
Can you expand on this? Say I have 100 shares at a 409 valuation of 10 and company valuation of say $1bb per the latest funding round. Now there's new series of funding and the company valuation doubles to $2bb. In your experience what happens to the share price? 1. Do they dilute the shares and the price remains the same or 2. price per share becomes somewhere between 10 and 20, closer to 10. 3. price per share becomes somewhere between 10 and 20, closer to 20. 4. Per per share becomes 20?
Holy shit you really think that this is a one size fits all formula? You're doomed
It means nothing if it is a startup.
Make up your mind buddy. Is it 8k or 10k ??
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