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At Valuation, ppl who joined Instacart 3-4 years ago were given the options/RSU? https://t.co/F6gQe8DdvB
Anyone who didn’t expect this coming was living under a rock all this time. Atleast they’re able to go IPO.
If you joined in 2021? How much are you left with after dilution and a 75% drop in stock price? Barely 10% of your original stock grant??
Don't forget about taxes too :) 🥜🥜
Equity is a bonus.
Insta destruction wow ! Market is brutal !!
20 yr old VC’s got FOMO’ed and found out.
The AMT horror stories from this are going to be really sad. It’s such a fucked up tax and only screws over the early team not the investors.
No we’re IPOing at such a low price no one is going to owe enough tax to make a horror story 😂
Can someone explain how this would hurt employees? Don’t you pay tax only when the shares go public?
Do employees who joined 3-4 years ago have options below the valuation now or they under water ?
Options are worth 0 , but that is actually better than holding RSUs ( dunno if Instacart did this ) because you already paid the taxes on the RSUs so you for sure ate a gigantic loss
RSUs are usually double trigger
Lode lag gye haha
No you guys. People exercised options, based on the spread between the 409a and your strike, you owe taxes on that via AMT. you pay tax even though you only made a hypothetical profit and not a cash one. If the shares you bought are worth less than what you got taxed at then that sucks. Now there are exemptions so it depends on the person
Damn holy shit those guys are the most screwed
But they are going ipo so at least it’s not complete end of world even at a low price.
How do executives not get fired for no IPOing in 2021 lol
Lmao many such cases , Stripe employees should look at this and start plotting a coup.
Way too tired to plot a coup
All those funding rounds during COVID likely have liquidation preferences... so the common stock will get a big hair cut..
I'm stupid, can you explain
That doesn't apply in an IPO. In an IPO, all preferred shares got converted to common shares.