Series C unicorn startup. Finally got clarification on equity package. 1600 shares at a strike of $10 with current FMV valued at $55. Feeling pretty confused. Does strike and FMV seem high for a pre-ipo company? I feel like it should have been a red flag when they offered me a dollar value instead of # of shares. #equity
yes it seems high but we can’t tell without knowing number of outstanding shares. nor can you take an offer without knowing that. if offer was in dollars and then they changed it to shares on your request, at series C this is probably bad sign and you can just turn it down. then again if this is unicorn the offer might be ok — more like series D or E based on valuation. we just can’t know with info provided
Your instinct is right. Not knowing what percentage of the company you are being given is a big red flag because it likely means you are not getting a fair offer. You should ask the company how many total outstanding shares they have. That way you can calculate your equity percentage. Once you have a percentage you can check out: https://app.startupequity.org/search to compare it.
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Companies that pay as much as meta
Not a lot of shares and outrageously high FMV imo. Context matters but generally below average deal
That's what I thought. What context would help further assessment?
YOE, what role do you have, current market cap, funding, current revenue, number of shares outstanding, company name. Some items I think should remain private but that helps in determining the FMV and how much equity you should have