When comparing an offer from a non-public (series D, valued at $3B+) company, how much value should be assigned to 'paper RSUs'? Current TC $200K all cash. New offer TC $260K/$180K cash. Lateral move, 12 yoe
I would say it's dependent on the private companies plan to exit and what your buy price will be on the shares compeared to the estimated exit price per share.
Good point. I am not even considering stock appreciation before the IPO. Let say the price remains the same, would you include it in TC at face value (i.e. add $80K to cash comp), or discount it for a chance that they delay IPO, you might quit, etc?
Yep, discounting is a must and removing appreciation is the safe move. It's definitely worth more than the $0 some people like to assign every startup regardless of its situation. It requires a deep look into the company's financials and realistic projections. Yeah, it'll depend on the factors you mentioned and more: weighing them all, determining the probability of each - multiple by $80K and you have a decent idea.
zero
0. Or like 1-10x if you’re a betting (wo)man
I've added to the OP that non-public company is valued at more than $3B. Agree it is a gamble, but still like to hear how much of a gamble it is.