StartupsMar 3, 2019
NewnBno00

Should I join a post Series B startup

I have three offers Dropbox, SF - TC ~450K as an EM AutoDesk, SF - TC ~230K as an EM Startup, LA - TC ~180K (plus 100K equity/year) as a Dir of Eng. Now I am mostly lingering between Dropbox or the start up. Even though the start up is paying less cash their equity is pretty decent with a good upside if they have a good exit. Now this is where I am a new bee in terms of start up maturity levels. So I did some research and below is what I know about this start up and I need some guidance from people who are working with start ups. For extreme anonymity reasons (a bit ironic though) I'm not naming the startup. About the start up They are an E-Commerce company competing with Amazon, Walmart and Costco within a niche vertical. Year 1 - Self funded and kicked off the company Year 2 - Raised $7.5M in Series A with $50M in Sales. Year 3 - Raised $120M Series B, with a valuation of $600M, sales at $100M Year 4 - Sales around $150 to $200M Year 5 - Sales at $200M Year 6 is 2019 Burn rate is ~$20M/year. When asked if when they are planning to raise a Series C they said that they are not looking to raise a new round at least for the next 2-3 years. Overall, as I am trying to dissect this it feels like a pretty matured growth company that could have a decent exit in the next 3 years. However they are not profitable and are planning to be profitable by 2020. Worst case I will be left stranded with their equity which may not mean anything unless they have a good exit. Their team on paper and track record looks solid and their offer matches with my current base. What do you think? Any guidance or suggestion would be very helpful. Thanks in advance.

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Facebook Pong Lenis Mar 3, 2019

Dropbox has a great name and great food. Unless this e-commerce startup’s vision speaks very near and dear to your heart, forget it.

LeanTaaS ♥️ data Mar 3, 2019

What's the current valuation? How many stock's you are getting and at what price? You can get that $100k from series B company in Bay area any day.

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nBno00 OP Mar 3, 2019

30K common stock options at $2/each (strike price).

LeanTaaS ♥️ data Mar 3, 2019

Trust me bro, Nothing special about this offer. You can get that kind of offer every day in Bay Area. Dropbox it should be...

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obesnchief Mar 3, 2019

dropbox. you'll be up $1M in TC after 4 years. do you think your startup equity will make up the difference?

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nBno00 OP Mar 3, 2019

Start-ups as you know are uncertain. But this one with their history in sales and a recent big acquisition of one of their prime competitor at ~$10B makes me wonder if I would regret not taking this path. Anyways thanks for sharing your thoughts.

Intel ArminVanBu Mar 3, 2019

Let's say it takes ~3 years to IPO, if you're lucky. In that 3 years you'll have made likely $900,000 more at Dropbox ($270k higher pay x3 and round up with perf reviews). How strongly do you feel that startup equity will be worth more than a million bucks? At 200m in sales I gather they have several hundred employees, probably 500-700. So you're not a foundational hire. Your equity could devalue if they raise more capital. The title is nice tho. And LA is better than SF (to live, perhaps not career wise). Its a tough call. Hard to leave a 450k offer on the table today for the promise and hope of lottery tickets later. A bird in hand...

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nBno00 OP Mar 3, 2019

makes sense and thanks for sharing your thoughts.

Dropbox ☕️☕️☕️ Mar 4, 2019

It’ll be more than $900k more at Dropbox. Our on target annual refresh grants are for 1/3 of what we’d make for an external new hire grant. So 3 years in you’d have received a lot more Dropbox stock along the way.

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Suckerborg Mar 3, 2019

How large can the startup be? Currently $600M valuation. Assuming it can go up to $3B? It’s 5X. Your $100K will become $500K w/o any dilution. So more likely you will see $400K. Far less than Dropbox TC.

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nBno00 OP Mar 3, 2019

Not sure but this is exactly how I am trying to process this. Thanks for sharing your thoughts.

Walmart.com QTFP86 Mar 3, 2019

Do not join that start up, love your life and family. I REPEAT do NOT join, numbers are illusional...

Square SQ Mar 3, 2019

Why the fuck wouldn't you do Dropbox LOL. It's an absolute no brainier. The startup's sales YoY is actually really bad.

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nBno00 OP Mar 3, 2019

ohk, would love to know why do you think so?

Lyft RanJMac Mar 3, 2019

Little to no growth.

Axon cwixjwicn Mar 3, 2019

He probably just got out of a startup

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nBno00 OP Mar 3, 2019

?

Axon cwixjwicn Mar 3, 2019

Oh. That should be a reply. Dude, join Dropbox

Unity bushes Mar 4, 2019

No brainer drop box