I am currently at Doordash and but looking to go work at pre-ipo. Rippling is offering me higher amount but the recruiter said the equity is based off of stock price of 40$. On equitybee I am getting Rippling for 15.5$ What should I ask Rippling recruiter for equity? Never worked at startups before so not sure how to negotiate. Current TC: 350K Offered TC: 400K
Secondary is artificially deflated compared to actual value since you usually have very motivated sellers that typically only sell a small portion of stock. I’ve seen average secondary hover around 26. 15.5 is way too low. That being said I think “True” market value on the shares is closer to 33-34 than it is to 40 if I’m being completely honest so I would factor that in when making a decision.
Good discussion of Rippling’s actual fair market valuation here: https://www.teamblind.com/us/s/4mQS0BZt tl;dr: EquityBee is likely correct. If you are generous and bullish, you might get to about $25-$30 per share today at the very top range. $40 is BS
EquityBee would be wrong even in the discussion above (I.e would be 21-22) and also going off of multiples for public companies when we are more than 3 years away from IPO would be stupid. Growth companies always have higher multiples and with interest rates falling I only see that going up from here.
15x is the very top multiple for SAS companies like databrick. With that you can get 4.5-5B valuation. $40 11B -> $19 5B, simple math. Apply 60% discount at least when calculating your TC. And IPO is always 3 years away. That’s it, unless you drink too much kool aid even before joining the company.
Forge and EquityZen currently have buyers in the high 30s, discount their cut for being the broker on it, you’re in the mid 30s. Not far from it.
How was the interview?
What is the valuation at $40? Is it 11B?
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I work at Rippling and I can tell you it’s current price is not $40. Not sure who gave you that number?
The recruiter said that equity part of compensation would be offered at 40$