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Companies that pay as much as meta
I know there are a ton of folks who declined DD offers for Lyft, Uber, etc. It looks like anyone who joined 1.5 years ago at 6 billion dollar valuation are going to 5X their TC and become instant millionaires. Anyone else mess up and join Lyft over DD? https://www.cnbc.com/2020/11/30/doordash-ipo-seeks-valuation-of-up-to-30-billion.html #doordash #Uber #Lyft
Am genuinely curious - how would they survive/make money post pandemic? What am I missing?
Same thoughts.
They will get into ride share!
That’s now how it works, you can’t sell if all your stocks immediately and become a millionaire 1. First you need to be working there for at least few years to have good amount of stocks vested 2. There’s a lockout of at least 6 months for employees after IPO, which means you can’t sell your stocks till at least 6 months 3. 6 months is a huge period, investors will certainly back out after the pandemic is over, their business model thrived due to COVID but vaccine is coming! 4. Look at Lyft, they went public at 80$ a share, but can’t keep up to half of its price now
Agree on all points but I’d always choose to be in the position where the proposed IPO valuation is 2-3x more than the private valuation like Snowflake, Airbnb, DD. Of course things can always go south where you make the wrong decision (engineer chooses to work for Nokia/Motorola in 2006 rather than an “MP3 company” like Apple).
Agreed with the first three points. But no point in comparing with Lyft who isn’t even a remote competitor. The financials are very different from the ride share companies going into the IPO.
Not millionaires DD employees are going to file a class action lawsuit like Uber folks for taxing at ridiculous IPO price after lock-in period expires.
How did the lawsuit go? Any luck?
Lol No. You enter a private company with risk sometimes things go like Snowflake or sometimes like Lyft.
Stock 5x doesn’t mean TC 5x.. especially for L6-
Dilution Base and cash bonus Vesting schedule Tax-at-vest so smaller growth thereafter Other factors?
I think IPO dilution are crazy, correct? People forget it's only really the founders and VCs that make money. Employees come in super last IF the company really makes it big.
Is it too late for me to get in? 🤣
Definitely not 5x you are not factoring in dilution which happens every time there is a new round of fundraising.
This is correct. You don’t raise millions and millions multiple times without dilution. The money will go back to the investors. The founders and current executive management team will get rich. If you are a Joe Schmoe engineer you’ll be lucky if you get 500k and then pay half of that to Uncle Sam.
This is the right answer. DD just raised billions Also wrong to assume TC = 100% equity
Or people who: 1. joined and quit before fully vesting 2. vested but didn’t exercise all options when they left There are endless scenarios like this. In another world, DoorDash could have gone bust and everyone working there wouldn’t have made anything.
Survivor bias is strong in this world. No one's gonna see the other 99 startups that crashed and burned.
This is a very ignorant post. Some of the reasons are listed already, but the bottom line is that the simple math you are doing is not accurate. Probably the biggest thing to look up if you are unfamiliar with the term is "investor preference". DD took many rounds of funding. It's not clear at all the IPO at this price is making anyone (including founders) wealthy.
It is making most employees v rich. I know personally.
DD is one company which made early 4-5 years of employees very rich... people who joined in 2018 at T6+ would have got $1million shares at $5... just before ipo their stock price was $230 and did 1:5 split and now it is ipo’ing at $80 ... killer returns... easily $20 million
This is insane nonsense all day discussing and comparing how unhappy and discontent must one be. Be grateful you are alive , have a job and your body is functioning. Very Immature conversations all in the mind. Guess yet to face reality of death and leaving all here. Let me enjoy this moment than waste 10 minutes of my life reading this non sense. Grow up people.
Wtf are you talking about
What's the point. You could buy options on the market almost everyday that could make you millions. There's no end to this line of thinking 🤷♂️ what can you do now is the question
+1 to this. One side effect of co going public is its stock is not exclusive if you have enough money. Serious q is do you have enough to buy in market equivalent of your rsu/options grant.
If you don't, you buy options for whatever you think will make you money. I'm just saying that it's possible to make $$$ by being lucky in ways other than joining a company