Hii how does a fast growing startup like Rippling calculate value of equity. Rippling's Series B valuation is [1.32 B] however they give options assuming their valuation is 3x. Offer: Base 215k, ISO: 48k Options. YOE: 7 years Also the strike price is not specified in the offer letter. Any suggestions how to proceed regarding this? Anyone recently joined rippling ping me using direct messenger? Lvel 7: current Stock price assuming 1.34B valuation ~ 6$[1 year old] but will be 18$ assuming 4 B valuation. Current strike price is 1.73$ will likely be 3$ before I join.
Strike price not being in offer letter is standard. Just need to join before the next 409A evaluation which triggers a strike price increase.
Can you sustain your lifestyle on the base alone? Strike - could be open to change as the price will only be set once the board approves your options… but you could ask what it is now, how long they expect before you have options approved and when’s their next 409a pricing event. Will they share how many total options there are? Eg 48k out of 100k total options would be amazing! 48k out of 1,000,000,000,000,000 less so! Ask about the potential for early exercising… if yes and strike is low you could save a ton of tax.
They have early exercising option. 409A is expected to happen soon. So Strike price is another unknown. Stock value tripled so expecting strikeprice to triple as well. Each Option is worth 18-strikeprice$ so roughly 720K based on 4B valuation roughly. I think I can try to make it 1M. But it is tough choice since public valuation is so different from current valuation.
Are you sure they have early exercising? I’m employee and I have asked about this 6 months ago.
Level?
Their Series B was less than a year ago, so it's definitely unreasonable to quote an offer at 3x their last funding round valuation. What're the 48k options worth at the 1.4B valuation? Make your decision based on that. Any upside is a bonus.
not unreasonable if you've already 3xed ARR since that valuation, which we have... and have received offers at that 3x number. we just haven't spent anything from the last round yet so no real pressure to actually fundraise
It's still unreasonable. If you want to use higher valuations to quote offers, go get another funding round that support those valuations.
What's your YOE and which level
It really depends on if the last employee equity pool has been exhausted. Once that, a smaller pool will be allocated for future hiring
What level did you get? Should be easy to compare with other offers if we know that
Seems like I was being offered at Level is 7. The current stock price is 18. Next 409A is due and it will likely be 4$ before I join. Current Strikeprice is 1.73$ with current strike price offer is worth 420k and assuming their valuation, value is 420K.
@OP How are you arriving at $18 for current stock price?
On a different note, how’s Rippling doing ?
2024 Presidential Election
17h
1287
Uh oh: President Trump leads Biden 49% to 43% in a two-way race.
India
16h
3062
Why is it so G*damn difficult to move money out of India
Cars
Yesterday
2001
Cyber truck killer: Chinese version of EV truck
Tech Industry
10h
487
How’s capitalism going?
Health & Wellness
15h
908
Issues with sleep
How do you know it's priced in for 3x already?
Based on their internal valuation mostly and bunch of investment offers they got.