How should I evaluate a startup offer?

Airbnb
chum_lee

Go to company page Airbnb

chum_lee
Mar 10, 2020 6 Comments

Moving into offer stage with a startup (~150 people) that I really respect and am excited about.
Unfortunately, onsite was remote due to current events, so I didn’t get much of a gauge on the company culture. I also am quite uncertain as to how I should calculate the value of the equity portion of the offer when I receive it. I’m sure they’ll be offering options, which I’ve never had before. I’ll ultimately be leaving a significant amount of unvested Airbnb RSUs behind, so I need to calculate equity fairly.
Any tips on how to objectively evaluate the following?
1. The business/promise of the company (I’m quite confident in this company, but would love tips on how to objectively evaluate)
2. The culture
3. The equity value

...anything else I should be looking into? Red flags to look out for?

#startup #offers

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TOP 6 Comments
  • #2 subjective, #1 you should ask about their numbers and evaluate if you believe in how they plan to move forward

    #3 is a crapshoot but you should value them based on #1 and #2 and their current reality. Treat it as 0 since some companies are always "2 years from an IPO"
    Mar 10, 2020 4
    • Airbnb
      chum_lee

      Go to company page Airbnb

      chum_lee
      OP
      Assuming the startup is doing well, shouldn’t they be able to ensure that the post-money valuation increases enough such that the value of outstanding shares & options still increases with each round, even after issuing new shares?
      Mar 10, 2020
    • Airbnb
      chum_lee

      Go to company page Airbnb

      chum_lee
      OP
      Tbh my understanding of this might be immature or I might be missing some integral part of the picture, so forgive me if that’s the case.
      Mar 10, 2020
  • Amazon
    hilarry

    Go to company page Amazon

    hilarry
    It’s a gamble when it comes down to it. Go with your instruct.
    Mar 10, 2020 0