Evaluating Brex offer
Offer from Brex which I am not sure how to evaluate Product Marketing Manager TC 250K YOE 6 You can decide how this is split between cash & ISOs any recommendations on how to approach the split, if I take the offer? at a $2.6B valuation, I'm not sure who could afford to acquire them, so if there was ever an exit it would likely be an IPO years down the road.
Brex has grown in value so much in such little time that while it does look to have a promising future, many people are saying it is overvalued
This is worrying: Like many startups raising capital today, Brex wasn’t in need of the cash. Dubugras notes the Series C-2 was more of a “repricing event” than a necessary fundraise. “We haven’t touched our money from the Series C yet,” he said. “For us, this round is a repricing event for the company that helps with recruiting.”
Very worrying. If he boldly states it was for "recruiting" that means they plan to create an inflated valuation for the company where the new hires will be given ISOs that are unrealistic and hence less cash the company needs to release to employees.
This doesn’t seem to be true since all new employees get to choose their split between cash base and ISO compensation at the current preferred stock price. You can take as much risk as you want as a new employee
Can you provide a breakdown of that TC?
The breakdown is whatever you want it to be. 90% cash 10% ISOs at current preferred stock price/valuation, 50/50 split, whatever you want
You’re basically asking how many Lotto tickets to buy. I’d say 20% sounds reasonable on ISO. Less, why gamble at all. More, seems irresponsible (unless you really don’t need the cash). $200k is not horrible TC if your ISOs don’t result in anything. You’ll get good exp and another payment name on your resume. And if ISO do turn liquid, you’ll still have a decent upside. Let’s say 5x. Arbitrary, but not unreasonable.
For the ISO to become 5x the valuation needs to be at least 5x. That means 2.5 Billion x 5 = 12.5 Billion To me that's very unlikely for Brex. What you guys think?
Valuation is definitely inflated right now, but doesn’t mean it is very unlikely that it’ll 5x. It has an okay chance imo. If it gains traction then it’ll grow nicely. If banks and other financial institutions copy their work then it won’t experience huge growth (and it’ll most likely fail). There are a lot of variables
The company is growing so fast and everyone here is extremely ambitious. I leaned more on the equity side. Personally, I have high confidence in the business.
But you're right in that it's not likely to have a acquisition. We'll have to wait for a public exit, which I think is still > 4 years away.
👆🏻Brex recruiter
Nope :)
Are you still working at Brex as a PMM? I'm interested in a open PMM role and would love to chat if you're open!
Value options at $0 and you will arrive at the correct valuation.