Hello folks, please help evaluate the startup offer. They have closed series B. $235k base, 10%bonus, 0.06% stock options, Location: Bay area ASIC design lead Current TC: $310K YoE: MS + 14
What’s their valuation
~$200m
Is it a hardware company? HW doesn't have good multiples and your equity will be 🥜 even if they go 10x.
Can you explain a bit more? Are you saying the option value ($amount) will be diluted (which seems unexpected) even if the company scales up.
Look at companies doing similar things. What was the highest valuation they ever got? HW companies never get high valuation when bought out or IPO.
Even at 10x current valuation, your stocks are worth $1.2M. Unless this is a sure-shot opportunity, the risk-reward doesn’t checkout. Someone had once told me - unless you see an opportunity to make 10x that of a big company, startups are not worth it. That’s the financial side. In terms of work experience, it might be totally worth it if your interests align with what the startup is about.
Valuation increase is usually the max at Series A and B. If it’s $200M after Series B, I wouldn’t count on it being 10X from here, maybe not even 5X.
Thanks for the insight! And I am guessing that coupled with dilution of options percentage will result in neglible gains if any.
Possibly. If you want to discuss about the specific startup, Dm me.
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Lower than your existing salary?
Base is higher.. but can't judge the options. It is paper money anyway.