How to value RSUs?

New
justsleep

New

justsleep
Dec 6, 2021 5 Comments

How do you value RSUs of pre-IPO companies? Should you value based on share price of last funding round or imply some share price for growth since the last round?

Recruiter quoted me $50 per share but last funding round in Q1 was $30 per share.

TC 225k

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TOP 5 Comments
  • Whatever recruiter says divided by 2.
    Dec 6, 2021 0
  • Nokia
    Chom_Hunt

    Go to company page Nokia

    Chom_Hunt
    Why, can't we figure out from web like equityzen and fair value can be around 80% of that?
    Dec 6, 2021 0
  • Apple
    rGrf21

    Go to company page Apple

    rGrf21
    Zero.
    Dec 6, 2021 0
  • Ideally, around the strike price at which they issue options .
    Another point to consider, when you leave startup , how much time you have to exercise options ? . If it's few days then you have to pay number of options * strike price amount to company to own those shares . So think if you would like to pay from your pocket at time of exercise and no immediate liquidation even in sight .
    Dec 6, 2021 0
  • Financial Services Company
    CBeS50

    Financial Services Company

    CBeS50
    Check out who the investors are for this company and see if this is going to ipo or bought out. Then think RSUs babe.
    Dec 6, 2021 0