Netskope vs SoFi offer
Hi, I got the following offers for Sr. Frontend Role: Netskope: 175K base 10K sign on bonus 19000 stock options (strike is not decided) 10% annual bonus SoFi: 185K base 15K sign on bonus RSUs of 300K value 15% annual bonus My major concern is that Netskope is pre IPO and the stock options can end up more in value than SoFi's RSUs or can even be worth nothing. Should I take a risk with Netskope or play it safe with SoFi? P.S. I have 5 years of experience
Go with Netskope. You won’t regret it
Any reasons why you are recommending Netskope?
Because you won’t regret it.
Netskope has 7 billon valuation and still grants option? At this level, it won't be 10x increase and 409a(the strike price) is probably not far from preferred share price, which means you need to pay a lot to excise the option.
What investors pay and what employees pay are different. If it is same, company would have given you RSUs
They are different but may be not very far away. Company around 1 billion may have a strike price of one third of preferred share. Company around 7 billion and close to IPO may have a 409a value 60-90% of preferred share, which is the strike price.
Netskope is hopeless in terms of IPO given PANW and Zscalar are already there. They might be acquired by them though
The market is so big. Don’t think it’s gonna happen.
AWS, GCP, AZURE, Oracle cloud co-exist with share of their own. netskope is not here to co-exist but take on. Being humble and respecting the competition can go long way. Remember apple beating dell? Samsung beating Nokia?
OP, that $19k stock is worth about 500k-600k in today’s private market. It will only go up. Ask what is the strike price and then decide.
Are you able to sell it in private market?
Yes. I can sell my vested stocks in private market. Investors are paying $28-$32 per share.
To give perspective on the potential for stock growth, Netskope revenue is only 50% of Zscaler but 1/5 in market value.
Where did you get Netskope revenue 50% of zs? ZS annual revenue 600m, you are saying Netskope revenue at 300m? That would be hard to believe. If it is indeed 300m and the valuation is only 7.5b, I would serously doubt Netskope’s business model or future
was told the same, they apparently are around that number this year.
Netskope share is super high diluted..... they will definitely do reverse split... it will be worthless
What does this mean exactly?
Pls elaborate what it means.
Netskope stock is not even worth calling paper money. The dilution is so high that at such late stage, you would probably be loosing money.
Can you please elaborate on this a little?
You'll be spending a lot of money in exercising the options. With so much dilution, there will be stock reverse split during ipo. This will bring down your current anticipated growth in TC. Sofi is a consumer business. Lots of potential to grow.
That’s a lot of shares. Sr level cannot get that many shares.
First thought - Clarify the Bonus structure with your recruiter. It's convoluted and you won't get anything in your first year. Second thought - The UI (frontend) dept is amongst the worst in the company right now and in great internal turmoil. You may want to steer clear if you value peace of mind and competent coworkers.
Second thought - I read it as very easy to get promoted situation 🤷♀️
Lots of changes in UI team indeed. I think that’s a good thing.
sofi is sold off hard now id pick sofi