Got an offer for a Series B start up who is in the process of raising series C. They said they don’t have the money in the bank but want to value my shares based on series C valuations. They have listed the investors and strategics (verbally) that they have terms sheets for. They have 4x valuation over last year. They claim to be able to be able to at least 10x valuation from here. Everything else looks good. Strong team with solid investors on the board with experience growing portfolio >$10B+ companies. Anyone else experience this before? I’m coming from a tier 2 FAANG company. Start up offer: TC: $300k $200k base $400k over 4 years Blind tax: Current TC $450k $220k base $30k bonus $200k rsus (for 2022)
And the offer is .... ? Not quite sure what you wants us to evaluate.
See above
IMO sketch to offer the equity at series C price before it’s raised, though by the time your grant is approved it may be likely the round is closed (and the 409a is increased)
Do you mean 409a might increase the valuation higher than current C valuation? If so, why?
seems ok. don’t take the offer until the C money is in the bank. if you take the offer now, you’ll be diluted by the raise. in addition to the offer being on the C valuation/terms
Thanks that’s good advice. Should the overall TC in today’s value from start up be less than TC coming from FAANG?
ignore today value. today value of equity is $0. the today TC is just the cash part
What’s their current valuation?
Series B is $300M series C is $1.2B. 100x forward ARR for 2022.
Said no one who became a millionaire
Depends on your risk appetite! But saying with absolute certainty that he should take cash is not the best advice