Help on offer evaluation at Series A startup
I have an initial offer from a Series A starup that I can't make much sense of :
Base : 190K/yr
Stock options : Option to buy 6250 shares/yr at strike price of $0.95
Company won't tell me total outstanding shares, but does tell me last valuation was at 85M.
I was also told that last valuation put per share price at $5.50
To me TC here is 190 base + 28K (spread on option) = 218K/yr
This seems like a ridiculously low offer, I would need a 10x increase in stock price for this to be even remotely in a range that makes fiscal sense to me
My question is :
1. Am I misunderstanding how much the options are worth ?
2. What other clarifying questions can I ask to get a better sense of what the options are worth? I can't find a secondary market data point on this company
Great product and team, company has a bright future, will work on very interesting things, so am very conflicted
Blind tax : TC : 360K ##equity #startup
comments
You will make more money in faang.
I still think this article is relevant and have some useful information about valuing equity, red flags etc.