Startup founder with background in iOS, but potentially looking to branch out of pigeonhole. Transitioning out of failed startup. Please give me all your thoughts: Startup A 175 Base .1% Equity in company currently worth 180M Details: - Really awesome mission, already doing 15M+ Revenue - Head of Engineering (i'm reporting to him) is very qualified, same position at Lumos Labs / Capsule - Eng #7 - Flutter Engineer building an app from scratch for a website that's already working - 2x'ed revenue last year (8 -> 16M) Startup B 190 Base .2% Equity in company currently worth 60M Details: - 3x'ed revenue last year (2 -> 6M) - Senior iOS - Eng #7 - Existing product that already has 200K downloads that i would step in and own (even though it's not the core product, the website is) - Potential to re-write the app for cross-platform in React Native Snap E4 175 Base 175 Equity - Senior iOS - Talking with both Snap Maps & Snap Sharing - A little scared about maintaining existing code rather than building something new Rippling (pending - just had final round today) ~200 Base ~200 Equity - Working with team to build out new product (procurement) - Excited to potentially win the IPO lottery - Former startup founder so idea of joining with other former founders / meeting them at this job is very exciting - Senior Fullstack working with React / Python
Rippling. Issue with snap is that comp while #cash, has no upside and gets taxed immediately. So you get a LOT less with no options later, and you're not getting an offer that offsets those downsides. Paper money is paper, until it's not. With Snap you're essentially saying you're retired. Startup A sounds like second best offer if you have an appetite for risk. Startup B is low offer, with more risk than any other option
Fair point on taxation (depending on how long i hold Snap stock), and truthfully i don't view more than 2x as a realistic possibility for Snap. Do you view 10x as a real possibility with Rippling? (honestly with amount of equity they offer, 3-5x would still be life-changing) Two-time founder so definitely have an appetite for risk and heavily considering Startup A. and completely agree on Startup B, i've talked to another founder in same industry, and they've talked about growth stalls at a similar revenue point so i know that's a real possibility.
3 to 5 is reasonable. 10 would be 5% chance
The time to win the startup lottery at Rippling was several years ago. The equity isn't going to 10x, much less 100x like it could for Startup A. Take startup A, that's good equity for a company already making double digit millions.
Definitely considering Startup A heavily. Your opinion obviously is worth way more as Rippling employee. Can you elaborate why you think 10x isnt' happening?
Current valuations are based on 11B valuation. 10x would be 100B+. The biggest player in this space (Workday) makes billions in rev and is profitable, and is worth 70B. So 10x is extremely unlikely. In fact 2x is less likely than not, though it certainly could happen.
Why leave LinkedIn? You are laid off?
Snap pretty easily, rippling nowhere near worth 10 billio
Would be curious why you feel this way. I know they re-raised at same 11B valuation with 3x revenue from their previous raise the year before. They're at 300M revenue now so 30x multiple is a lot yes but not unheard of, gusto pretty sure has same multiple.
Look at other public comps multiples(workday, etc.) obviously decision is up to you but much more likely it’s worth closer to $5. Also rippling has notoriously shitty working culture.
Snap L4 is not really senior, there are people with 2 YOE as L4 it's only really slightly higher than Google/FB L4
Not ripping.
Did you get rippling?
Rippling and snap both have terrible recent reviews. Seems like the $ train has passed for joining them
Snap. Take the comp and invest aggressively with leverage/tqqq
Why tqqq?