I noticed that in the last 5 years startups don't really go public and grow beyond 10B+ with external investments. Then people join and watch them drop massively! Uber was worth $60/stock before it went on an IPO 6 months later $30 Instacart was worth 40B when it was private. Now it's worth 6B. Coupang was worth nearly 100B now it's worth 26B. Even Roblox hype went down! Then you also have companies that stays private. Like Stripe! Used to be worh 100B, now what? 30B? These companies handed out their private stock like toilet paper. I remember instacart staff eng comp was like 700k. Let me remind you how their comp was structured. Someone who gets 770k, their base was 270k and got 500k per year stock! This was at 40B valuation. Almost 6 times less than today. This person left his cushy E6 job at Meta with TC of 500k. For all that upside. Now reflecting back, In 2 years paper stock was worth 1M. Actual valuation is $170k! That's 85k per year. So actually this person's TC wasn't 770k! It was 350k! So you got massively ripped off! I'm just warning people â ď¸. Demand these companies to pay at least 2x the stock! Even in Instacarts situation you'd still make less than FANG! #meta #netflix #google #instacart #roblox #tesla #uber #coupang #stripe #tiktok
You are a genius.
Devaluation happened across all tech companies post pandemic and yea, startups got hit the most.
Now do tiktok. 300B valuationđ
BD is undervalued based on the numbers I have seen though. And massively profitable. But then it is under Chinese control so all bets are off.
Yep Itâs the China risk. Alibaba has ton of cash but stock is in the toilet. Heck their index itself is at 2009 level now.
No everyone is after money.
Do not lie to yourself. How likely you'll join a private company (say databricks/stripe) for half your current TC? How likely you'd join for 2x TC (even if it's partly paper money )?
Ask ex google ex meta who moved to startup or preIPO company. Obviously there are a lot.
if u joined any faang at $10bn valuation u be doing ok right now
None of FANG got investment that made them worth 10B+
the company you work for raised $280m of venture capital seed thru series C to be valued at $15bn in 2007
Agreed. Many people don't appreciate that the RSU component of blue chips like Google, Meta, Microsoft, Amazon etc is as good as base and actually better than base because it will keep up with inflation and cash won't. So a Google/Microsoft TC of 200k base + 200k stock is actually comparable to 400k base at a smaller company.
Lol tell that to people who had AMZN RSU vesting ~9 months ago đ˝
You werenât paying attention to Meta stock in 2022 were you? Itâs a lot less risk than paper money from startups but I wouldnât call it as good as base. Some folks who joined in 2021 are just breaking even now on their initial grants. Some massively profited off of joining at the right time. Itâs still risky comp.
Uber is now over 100B and stock price is $65 though.
Yeah after how many years it took? What if you were at more stable company like LinkedIn that holds MSFT stock?
You could have been in a large company that shrank too, not all large public companies are winners. I'd prefer a public company over private any day though.
Recency bias. Last 5 years was an anomaly in that debt was cheap and startups got easy funding. In a not so cheap market, startups with actual clout will stand out and are more likely to succeed than those 5 years ago with more "valuation".
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No risk no ârari But joining a massively overvalued startup (over 1000 people) is also not people taking risks tbh. Itâs just ppl being dumb and are we supposed to feel bad?
Dumb? I joined uber at $33, stock is now almost double
Same thing would've happened in faang too