Proper valuation of Lime stock options
How to value Lime stock options? Let's say offer includes 200k options (over 4-year vesting schedule) at strike price of $.15. From SharesPost looks like shares are currently valued at $.24/share. So, I'm thinking current value of options is 200k * (.24 - .15) = $18k. Is this a correct valuation? How comparable is it to an offer with RSUs from now public company (say, Uber), which value is known to be $150k over 4 yrs? Doesn't even seem to be in same ballpark. Or am I reading stock options incorrectly? As an aside, if a share of Lime stock is currently valued at $.24 after series D (started at $.0136 at Series A), did Lime strategically create tons of shares to intentionally keep share price low? To what end? Even if Lime's value increases 10x, that's still only $2.40 a share.
How many basis points is that ?
clarification: offer includes option to buy 200k shares (not 200k options) at fair market value
It’s not shares or you would have to pay tax on them. It is either RSUs or options.
If the Series D was $0.24 the company would have to be completely incompetent to get a 409a (common stock value) of $0.15. A more typical price would be 20-30% of the preferred valuation at that stage, or $0.048 to $0.072. > Even if Lime's value increases 10x, that's still only $2.40 a share The price per share doesn’t matter at all. 10x of your grant value is still 10x whether the stock is at $2.40 a share or $240 a share.
The bike sharing space is very crowded at the moment. Plus last time I checked, money raised by lime is half of their valuation at the time. This situation would screw you up if it gets acquired more or less at that valuation. If you are going there for money, brace yourselves for surprises. Go there for experience not money.
Zero
A few thoughts: 1. The value of your options is only (0.24-0.15) x 200k like you calculated. However, the ratio of 409a price to preferred price is unusually high for a startup of their stage. Are you sure 0.24 is their preferred stock price? 2. You cannot compare private company stocks with unproven business so early in its life to a public company stock. You have to make a call regarding the potential of the business opportunity, team and their path so far. 3. Value of a single stock doesn’t matter. You can split or reverse split to get any number.
Consider it $0
That’s not how company stock options work. They aren’t the same as options contracts.
You are confusing incentive stock options and stock options! 1 ISO = 1 share