I have got an offer from flexport and I should take cut on my base to join flexport ~ 20k I have been hearing various information about IPO is IPO real? And also Pre ipo RSU’d have double trigger policy and expiration dates on their RSU’s so if they don’t go ipo for 7 years or so my RSU are worthless. Does Flexport pay less by luring IPO dream? Please shower thoughts Flexporters? Current TC - 230k Flexport offer - 160 + 16 + 30000 units Secondary market share price is 21 per unit. Thank you #equity #startup
Officially annnounced no IPO plan in 2022. If market crashes next year; no IPO would be possible for next 3-5 years or till next bull cycle. These are facts make your decision accordingly
My recruiter said it depends on how the market is doing. How is the IPO so tied to the markets?
Also any particular reason you’re still working for flexport?(Given the IPO is still way in the future)
No IPO in 2022. I don’t think the market is really going to crash but the company seems clueless about an IPO. All the other executives are just yes men and don’t challenge CEO’s decision. The company is doing incredible well but their Hesitancy to go IPO in a bull market with the shipping crunch tail wind raises doubts. The CEO said he doesn’t won’t go IPO at a crazy valuation. Why the fuck would you not?
That's not even correct information you give here
What’s wrong?
This is correct that the secondary price is around $20 and the company is doing really well when it comes to numbers. Also, it seems some employees are pissed( I am a little dissappointed as well tbh) that the ipo may not happen when they want it to but I would absolutely be okay waiting of that if it means we quadruple our valuation by IPOing a little late. You may be talking a pay cut since the offer has paper money but even if you treat it at 50% of the secondary market, it's still more than the current Tc so looks good.
Yes, I agree on waiting and quadrupling the valuation, but what if the RSU’s go worthless.
Agree with this. Emotions are running high and folks are kinda mad at the leadership but I guess the long term vision makes sense
I mean if they do not go IPO until expiry.
There is zero chance that the company would let employee RSU expire. Be realistic.
tJN, I think you have too much faith in the company. Of course they'd let RSUs expire if it meant that the company itself ended up doing better in the long term.
A lot of people are bullish about ipo but it won’t happen anytime soon. Might be 3-4 years to ipo. Also need to understand that last round of funding by softbank was 1b and most of it is sitting in the bank. They dont need to raise anymore. Hence i feel they won’t ipo until they run out of money or the investors feel they need to liquidate (which some are in secondary markets by selling options ). But if they do go ipo in next 3-4 years the price would be 40-50$ given how well they are doing.
Is Flexport even close to being profitable? I recall their unit economics and long-term vision being a bunch of bullshit
Yes. Very profitable and the trajectory is mind blowing
What I would do with a flexport offer is, ask for more TC and assume any options are worthless.
That’s the way; anything coming from RSU is just a bonus
I could argue same on Instacart unit economics in its current state. Infact, I find instacart business model much for fragile than Flexport.Truth is all tech scale up unit economics is based on product vision being realized in long run
I’ve seen Flexport’s numbers and they’re 1) absolutely terrible on a unit basis and 2) manipulated to seem way better than they are. I’ve seen board decks and they’re criminally misrepresentative. Serious WeWork vibes Flexport’s “software” is also garbage, and is really just a bunch of people behind the scenes doing manual work. Maybe paying Cornell grads twice as much as other freight forwarders pay people in the Philippines to push forms back and forth isn’t such a great business model. The founder is also a fraud, and is literally stoned out of his mind pretty much every day. Take all the shots you want at IC if it helps you distract from the Flexport tire fire. IC isn’t without its problems, but its unit economics are actually pretty strong and the execs aren’t all snake oil salesmen. If you have Flexport numbers that prove me wrong, I’m all ears.
For 1) Yes, terrible b/c those numbers are from early 2019. We are in 2021. For 2) you don't know what you are talking about. On Flexport software, you don't know what you are talking about. 10k clients worldwide using Flexport software. On manual work. Every business is different, its a global supply chain logistics, its is complex problem and is not a online grocery shop. Indeed, it requires manual intervention just like other businesses. You can't replace humans with robots everywhere. Again you don't know what are talking about. On CEO, He brought company from zero to here in 7 years. No company has such growth in logistics and supply chain domain.
That’s a good offer. Yoe? Is this management or ic role?
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Op. How can we make a judgement if you don’t provide us what those 30k is worth?
Added
Looks good. 210k worth of stocks per year.