Which offer to take?

Oracle
8378

Go to company page Oracle

8378
Dec 16, 2021 15 Comments

Offer 1: Series B AI/ML company with top notch investors and strong founders
-50 employees
- appx $100M valuation with only ~ $2M annual revenues (seems pretty high valuation even in this high valuation environment)
- $250K salary
- $100K worth of stock options (so would need it to get to $1B val for stock to be worth $1M, not factoring dilution etc).

Offer 2: Databricks
- $38B valuation (based on last round) which equals $220/share.
- $225K salary
- $286K in RSUs (1,300 rsus)

I think my gut says Databricks is probably safer option, however with a massive valuation already, I am a bit concerned about upside. On the other hand, the start up equity amount is less, but more potential upside? Would appreciate your thoughts thanks!

121 PARTICIPANTS SELECT ONLY ONE ANSWER
VOTE VIEW RESULT

comments

Want to comment? LOG IN or SIGN UP
TOP 15 Comments
  • Amgen
    random50

    Go to company page Amgen

    random50
    You don’t join a series b startup for 100k in options. Lower salary to $220k and increase options to $400k to be comparable-ish. Imo, Databricks will triple in valuation from here
    Dec 16, 2021 2
    • Oracle
      8378

      Go to company page Oracle

      8378
      OP
      Thanks for the comment. Start up is being pretty stingy with the equity. I don’t think offering to reduce salary by that little is going to 4X my options amount. Maybe if I ask for $100K salary lol. But I do agree that Databricks (on the upper side can hit that $120B valuation), and I say that because that’s basically what snowflake has been doing (before the pullback over the past couple days)
      Dec 16, 2021
    • Amgen
      random50

      Go to company page Amgen

      random50
      Then Databricks or a better startup. What % of company is $100k options. It’s a minuscule equity amount for that stage
      Dec 16, 2021
  • Financial Services Company
    uFsv12

    Financial Services Company

    uFsv12
    Databricks any day
    Dec 16, 2021 0
  • Think about liquidity event for both companies. Series B startup will remain private for another 5-7 years with a high chance to fail as many early stage startups do. Databrix will be either acquired or more likely go public within the next 2 years. I would choose Databrix.
    Dec 17, 2021 2
    • Oracle
      8378

      Go to company page Oracle

      8378
      OP
      I know this doesn’t have a clean cut answer, but let’s say the start up were to hit about $10M ARR over the next 3 years, and was acquired. Any idea what range they would be acquired at? With similar companies in this space being valued at ~50x, that would be $500M. Is this a fair way to look at potential? In this case, my stock would be about $500K without considering dilution, opportunity cost, and everything needing to go right for that liquidity event to happen
      Dec 17, 2021
    • I look at early stage startup options as at lottery tickets. There is a very low chance you are going to win and even lower chance you will win big. With a company close to IPO like DataBricks - you should assume that you are getting RSUs that are values at their market value. Some companies shoot up after IPO, some go down. 60% of them are trading lower then their IPO price 1 year after IPO.
      Dec 17, 2021
  • New
    lsVf61

    New

    lsVf61
    Databricks may have a hard time increasing given the recent correction.

    If the investors / founders are phenomenal w/ series B, I'd go with that. $100M means there's upside. Push for more equity

    What's your YOE?
    Dec 16, 2021 1
    • Oracle
      8378

      Go to company page Oracle

      8378
      OP
      Even with recent correction, won’t things pick up as well? ups and downs of a market, top tier tech companies will still shine. 10 yoe
      Dec 16, 2021
  • Given your offers, you are early in your career. Take the largest company you can (Databricks here) to gain experience and brand recognition. Later in your career you will be able to join a startup with 10X that equity.
    Dec 19, 2021 3