Hello, I’m new to startup world. And I have a very noob question. A company has ~100M stock units and if the employees gets the right to buy 45k stock options at X strike price. Is 45k options == 0.045% of company? For Series D is 45k (vested over 4 years) is a good amount of stock options for EM position? VP of engineering says it’s a good number options and company is on track for next round in 4-5 months. This will at-least double the value of each option. Thoughts ? I honestly feel, number of options is less. Current TC: 420k And YOE 11 #equity #startup
A next round of funding isn’t a guarantee of equity or options realizing wort
Hmm. If the company valuation increases from 1B to 2B, that doesn’t increase the value of options?
You need to factor in dilution coming with the next round. They will make more options to attract new investors
company valuation,number of employees, these have big impact on the percentage
Funding will dilute your options further. Not sure you can negotiate and get in writing non-dilution of your options
you can’t. dilution good for you anyway. company increases it’s valuation through dilution. this is the ONLY way valuation increases. dumb to think dilution is bad
Entire valuation doesn't go to employees. There is 2X to 3X factor for the last series investors. Some startups keep extra pool at every dilution and replenish existing employees as well
Share number means nothing. You need to know preferred share price and 409a.
he gave the percentage you dolt
Percentage is also good. But op just guess 10k is 0.001%, which is wrong
yes it’s reasonable offer. i wouldn’t call it good
and yes you can expect each option to approx double in value. if it doesn’t then company is slowing down and you should start interviewing. this is good timing to join. you know in a few short months whether to keep going
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For late stage company it is more common to talk dollar value of the package at last valuation.
Got it. Current company evaluation is 1B.