Cars
Yesterday
1675
Electric cars depreciate 10 times faster than gasoline cars
Tech Industry
Yesterday
1522
Absurdities of the Bay Area 😒
Tech Industry
Yesterday
773
East Asian Men don’t talk to me bc I’m Vietnamese
AMA
Yesterday
1250
I have worked at TikTok US core tech for 3 years. AMA.
India
Yesterday
622
Any Indians Think Kashmir Should be Independent?
Hey people working at plaid! Would appreciate if you could help me out. Plaid has rolled out an offer at 13.4B but based on market data, it seems to be overvalued by atleast 60%. I have seen other companies (such as stripe) to issue offers based on their trailing 409a price. I had few questions, would be great if few folks from plaid can respond- 1. How much should I consider the equity worth? 2. When do you think plaid will IPO? 3. With stripe launching a competing product, would plaid survive? 4. How does refreshers work at plaid? Like, if 409a is down by 50%, does plaid give more $$? 5. During appraisals are additional RSUs granted at the valuation based on 409a or 13.4? L5 at amzn, no path to L6 L5 comp - 275, 8 yoe Plaid- 205k/750k over 4 years #Tech #plaid #fintech
The only way to know if it’s over valued is if you know their revenue and their YoY revenue growth
That’s if you’re using a DCF model which isn’t very useful at the growth stage. He could be using comparables in which case Plaid might be overvalued relative to benchmarks
To compare two companies and get their multiples you need their revenue and growth rate as those are the the primary inputs to the equation. Current public EV/Rev multiple for high growth companies is like ~12x. In November is was like 45x. If their multiple is less than 25x I’d say thats good. The lower the better
Real valuation is probably 20% below the $5.3B that Visa paid to acquire them before the deal fell through. This was when Stripe was not competing and markets were booming.
Around 4.2B is how I should be evaluating the offer? That means 1/3rd of the stock price
I agree with Yelp. Sucks to hear from your perspective I’m sure. But Visa wanted to buy them and was willing to pay a premium on top of FMV at the top of a bull market. As we all see, growth stocks have been destroyed and Plaid’s position has suffered. So even the 5.3B may be tough to justify and I’d say it’s probably a little less than that now
Options and RSUs are issued based on the secondary or premium price which is always higher than 409a. In theory, increased interest rates would increase WACC thus lowering 409a, but it shouldn’t affect how much they issue or calculate your grants.
1 their arr should be about 300m rn, using a 15x revenue multiple, giving a bit credit to them being the data aggregator of fintech, I'd evaluate Plaid at 5 billion. 2 should be in 2 years, whenever the market is ready, the VCs are ready to dump their shares. 3 Stripe serves a different customer group(non fintech startups), but definitely see Plaid's core business impacted by this. At least Plaid will have no edge going after Stripe's existing customer who have banking connection needs. Some fintech startups may also consider using Stripe. Overall, impact is not that big but Plaid's core business will grow even slower(i am sure It's < 50% yoy growth rn). 4 no refreshers, unless exces think it'd be necessary to retend ppl, most likely not. 5 don't understand this question Consider your offer as 205k+288/4=277k I am assuming with your yoe you can get 500k as L5 somewhere if you pass the interviews. So opportunity cost is 223k and possibly liquid compensation at a public company.
Wow 300 mil revenue and 13 bil valuation....
Bumping this 🙌🏼
Plaid is way overvalued right now. Public fintech has been crushed in validation, Plaid has new competition from Stripe, and there doesn’t seem to be a massive growth trigger on the horizon for them so I don’t see why Plaid should get such a premium.
Nice email
?