I’ve recently received a L3 offer from Nextdoor. Comp offered: $160K, 15K options over 4 years, $10K sign-on bonus. They currently don’t have yearly bonus. Strike Price: $7.46 I’ve a few questions that I wanted to ask (sorry if I’m asking too many questions): 1. They’re claiming that their options are selling for $40 in the secondary market and that’s how they are asking me to calculate my TC but according to their last evaluation in 2019, the preferred price is $20.39. Now I am not sure if I should consider the option price as $40 or $20.39? I read several blind posts and Other companies such as R’hood, Coinbase, Chime, etc are still giving options based on the preferred price, not the price at which it’s selling in secondary market. Asking this since this could make a major impact on my TC. TC considering $40 option price: $310,000 TC considering $20 option price: $235,000 Cost for purchasing these options: ~$28,000 per year. 2. When is Nextdoor planning to IPO? No one could give me an answer to this question when I spoke with the leadership. 3. How much Nextdoor’s revenue been growing? If someone could provide some numbers or percentages on YOY growth, that would be great. 4. Nextdoor’s potential and user base growth? I don’t know anyone who uses Nextdoor, hence what is the leadership team doing to make sure that people come and open the Nextdoor’s app? 5. It’s only available in 11 countries worldwide. Should I take it as a positive in a way that there is so much growth ahead of it? Or it’s a negative and there has been setback in other countries? 6. How far Nextdoor is from being profitable or being EBITDA positive? 7. In one of the posts, I read that the new leadership is bad as it mostly consists of ex-yahoo and Uber employees. Is that true? 8. Is there more room for negotiation? YOE: 4 Current TC: $200K #engineering #software #swe #offer #nextdoor #evaluation
Good questions. 1. Consider for what it is right now. $7.46 cost and potential for growth. 2. Anytime. Google Bloomberg article 3. It's solid. We hired new head of revenue and are wise with our spend. 4. We are focussed on growth and making Nextdoor a daily utility. 5. Take it as balanced approach for conserving cash and responsible growth. 6. Private info. Ask recruiter if you really think hearing this answer will change your decision. 7. This is true. They are in very powerful roles and well connected. Do not fall into the landmines with the power mafia there. 8. Unlikely. There are too many who wants to work here and your learning opportunities are unmatched here.
So why haven’t you updated your company tag since you’re pretty active on Nextdoor posts. It would give a bit more credibility to your statements
I don't know how to do.
Sorry I can't answer more.. 1. I had the same experience where they were basing TC on secondary market price which seemed weird to me 8. Yes, there's a little negotiation room
Had a call with the recruiter and their 409a has changed, hence the SP has increased significantly. Hence I’ve declined their offer since there is too much money I’ll have pay to acquire those options. Not sure why they didn’t move to RSU model. Anyhow, thank you all for answering my questions.
OP: Whose offer did you accept? High SP is not bad thing. You are going to make money on difference (not on absolute purchase price) between list price and SP. Companies offer cashless excercise to buy and sell your options when they list.
I’m still interviewing. Problem I see with high SP is I’ll have to do cashless exercise and if I do that, I’ll pay lots of money in taxes, so overall my gains are going to reduce.
I would not reject companies like Nextdoor on above logic. That's just me tho. All the best. Update thread when you land on your final target.
Where are you based?
Bay Area
declining an offer because of a higher SP doesn’t make a lot of sense. You have no idea what the price would be when lockup expires. It could flat it could be 3-5x today’s SP after IPO and after a few ER down the road. Majority of people cashless exercise , and you can always excercise and hold for 1 year and play LTCg
This also means sticking around with Company till IPO right as only then you will get the cashless exercise option otherwise you have to exercise everything when you leave the company within three months ??
Joined Nextdoor or moved on?
How is it boss
India
Yesterday
596
Any Indians Think Kashmir Should be Independent?
AMA
Yesterday
1133
I have worked at TikTok US core tech for 3 years. AMA.
India
Yesterday
1006
What do vegetarian Indians eat for protein?
Fitness
Yesterday
2973
Very thin yoga pants
Cars
Yesterday
1626
Electric cars depreciate 10 times faster than gasoline cars
1. IMO it's scummy if they base their valuation on the secondary market. 2. Nobody knows except the execs and lawyers, and they're not obligated to tell you. To be fair, no company will tell you when they're filing their S1 or going to IPO. 3. It's private information since it's a private company. Any numbers you see are illegal leaks or guesses. 4. This is up to you to figure out. Why would you interview with Nextdoor and go through the process if you're not confident in their mission? 5. This is a decision for you to decide or for your recruiter to ask. 6. #3 7. The new leadership team is pretty good! No complaints there. 8. You can negotiate as long as the offer isn't final. TC looks like an upgrade from your current company no matter what lens you view it in. The culture at ND is great and everyone is awesome to work with. You're going to have to make some final decisions Nextdoor's potential for growth since the numbers are private (pro and con of joining a startup).
Recruiters actually gave me some of the revenue and user growth numbers before I accepted my offer... OP, Might be worth asking. If its any indication of things, I ended up joining even with a couple of other stronger offer numbers.