Slightly old news, but I just realized that Uber had a downround when it took money from SoftBank. That would have wiped out a lot of employee equity. What do folks at Uber think of this ? Also, who was able to sell in that round.
For the ones joined before 2014, it was a nice cash out event.
You wouldn't get "wiped out", you may lose some percentage and that's it, right?
you can get wiped out with options
Who cares about those fuckers
Why would it wipe out? I thought that it was all buyout from current investors and employees who had options. Not that new shares were issued.
Not so much "wiping out" but certainly adding even more dilute to the mix. Uber has given out so many shares through investment that when they do their IPO the huge dump into the market could make the share price collapse.
Yes, only secondary shares were sold so no dilution took place. It was a nice liquidity event for early employees who had options. We have a 409a price which has always been lower than the publicly quoted valuation which is the preferred price - upon ipo the two is supposed to converge. The “downround” to SoftBank was closer to the 409a price. It did mean that people who got offers at that time got more stock though - because it was harder to hire due to negative PR etc, and recruiters tend to quote the last fundraising valuation because 409a is not public information.
Actually it gave many pre-2015 employees opportunities to cash out at a not bad price. Many of them got a house with that ...
And they found out them selves idiots just a few months later.
The requirements iirc was that you needed to have options not RSUs and you need to have net worth over $1 million
:yawn: