CompensationNov 22, 2019
SamsungPostNew
Company gets 409a evaluated in monthly basis pre IPO. Should I join the company?
If strike price is set by the 409a evaluation monthly and will be determined at the start date, does this mean anything? Let’s assume I joined a month before IPO. Will this be a bad idea? What is the ratio for IPO stock price to valuation/strike price before IPO? Are they the same assuming valuation was perfect? I see posts about preferred price vs strike price, but having hard time understanding. I’m new to startup world. Please help. TC: 190k
LightStep DVng15 Nov 23, 2019
This is pretty common pre-IPO and a good sign. I wouldn’t worry about it. 409A, IPO price and IPO day high are all pretty variable and unpredictable. With your undoubted lock-up period, these things wont matter and you’ll just be glad you got in at a lower valuation/ more equity.
What’s the ratio of your awards shares to all shares in the company? Are you early enough to be >1% or late enough to be <0.1%? Those are the fuck you or not money numbers.
Pretty sure <0.1%. Though the company is very highly valued. Maybe even <0.01%
Not fuck you money, but money money. Ultimately can you sleep at night with the situation?