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Calculated my NW and now i can't sleep
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I am starting to think Chinese interviewers currently fail non-Chinese candidates on purpose.
Recently got an offer from Databricks and the recruiter mentioned that the offer was based on the last funding around in 2021 @73.33/ share. Yesterday I checked in equityzen and looks like the valuation now is at 48 billion and 63/ share. Is this because of stock dilution ?. This is my first offer for a company that is private. Can someone help me understand? Current tc: 310k Db offer: 303k ( 203 base and bonus + 100k $$/ year(in RSUs) @73.33)
New grad?
No .. non sde role
YOE?
Equity zen pricing is actually a premium itself of 20-25%. So their actual price is likely even lower.
Yeah , share prices fluctuate, SNOWs equity zen pricing was probably lower than their ipo. What concerns me most is that they could just keep buying all these companies with their stock and there could be crazy dilution. But there is no public data on this, not able to understand why the dilution is so high
It seems time is not on its side.
It’s not due to dilution. $63 is the asking price. DB is is valued at a lesser point than before.
True , but why does it say that @63$ the deals implied valuation is 41.9 billion ?. If the share price is $73 at 38 billion, would it not be higher at 41.9 billion ?
VC valuation and Market valuation are treated differently. Recently had a couple of founders explain this to me so take this with a grain of salt: VC valuation is something the founders and VCs agree on and do funding rounds based on. This is a static number fixed at the time of valuation. Now this is what you Stock options will be given at. Fair Market Value or what equityzen reports on is based on comparison with similar public companies. Now this value is tied to stock market and will fluctuate based on markets moving. Like everyone said this is from the 2021 compression. Your offer is probably based on that VC funding. At least my past offers have been. That makes the calculation of shares, ownerships future projections (bigger and) much easier
Due to multiple compression since 2021 which was the height of VC hysteria. For example Fidelity wrote down their investment in DB 33%.
That is not my concern, as earnings catch-up , value has to go high. The share price should grow in proportion to the valuation. As the company generates more revenue the individual share price has to go up. But, what happens here looks like the per share value keeps going down even as the company generates more value. This could be a bad thing for the employees as it kills their upside, which is the only reason to join a pre-ipo company
You are saying two conflicting things @Op and I don’t quite understand
Which role is this for? Product!
It’s insane that they can still give out offers with 2021 valuations. Tells a lot about a company
Yeah received offer last year for 425k with eval of 38b iirc. Didn't remember a 40+ figure tho? Said heck no that's crazy. Then iirc eval dropped to 31b or so I thought...? Haven't been following much recently
We have grown into it. Please do some research.
Does DB allow WFH?
RSUs
Which one would you prefer?
That's probably because 2021 validations were insane. Id jump at the chance to only be down 20 percent
Looks like the valuation is still crazy, but if the value of a share at 38billion was 73.33, should let it be higher at 48 billion valuation ? Like atleast $88 ?. For all I know the valuation keeps going up but employees will never make any money because there is no upside
That's what happens if you do a down round. Or they could of down a stock split