I received an offer from a series B startup valued at about 70 to 80 mil. Total money 💵 raised until now about 11 mil. The offer does mention total number of outstanding shares of the common stock as well as options granted to me over the period of 4 years. If I am calculating it correctly it comes out to be around 1% of the total equity. Not sure if I am calculating it correctly though. The position is senior level and I have about 8 years of experience. The company size is ~20. 1. While calculating the equity do I have to take only common stocks in to consideration ? 2. Does company need to mention the # of preferred stock as well if any ? 3. Is there a rule/formula to calculate how many preferred stock a company might have?#startup #equity #options
It's a third party recruiter and they don't have this data. The company is really small and they don't even have a dedicated HR or recruiting department. I only have access to people who interviewed me and the Hiring manager.
No,yes,no(but typically $1/share for a, then b+, is based on valuation). 1% for b seems high, except maybe for vp sales.
That was my thought. Unless you are a CXO type Exec, 1% seems high for that late of stage and that many employees.
yes they need to mention preferred shares but you can calculate that from the valuation
How do you do that? The valuation is about 70 to 80 millions
If you know the preferred price then you can calculate the total outstanding shares. How many options did you get ? You should ask the strike price and preferred price of the stock
I’m in a similar boat. The recruiter told me the price that investors paid in the last round of funding. Can this number be used instead?
Why not ask the recruiter your ownership % directly?