What methodology do people use for evaluating the value of RSUs from a pre-IPO company? They’re offering a grant of a specific dollar amount, but without a liquid market, how do you figure out the realistic value?
0
How much have they raised and what are they valued at? If valuation:raise is 10:1 or higher, divide by 5, else divide by 100.
This hits close to home for CK employees! Certainly not $0. There are opportunities to sell during liquidity events and the chance of IPO. It depends on your risk tolerance. In your case, it’s hard to say without knowing company. Is it profitable? What’s the current valuation? Etc.
Welcome to compass
Pre-IPO shares. Ha ha. What’s that saying about those who don’t learn from the past? https://youtu.be/arENYYkYBts
A lot of people at Facebook and Google got pretty wealthy off pre-IPO shares...
Not saying it can’t happen. Just saying don’t ignore the risks and be realistic. Many threads on Blind that document risk/rewards of startups and pre-IPO shares
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percentage of the company and possible exit valuation of the company.