I have been granted 5,000 shares at $.90/share. If my company is valued at 300M how can I figure out the value of my shares?
Well if you are just granted, and the company current valuation is $300M then it is $0.90/share. If in the future the valuation is higher and the total shares outstanding increases then the value will change.
Also, the company was worth 62M when I received them
So that means if there is no dilution then your shares worth 5 times higher now. However, if more shares were created (especially after a new funding round), then there will be a dilution. You need to find out many new shares were created since when you received them, at which time the total number of shares outstanding was around 60M/0.9=67M shares.
🍿 to follow along
Grant value is usually tied to current valuation of the company. This is to comply with a law (sorry I don’t remember the exact name and stuff) that stops companies from discounting the options or backdating them. Looks like your company valuation has increased 5x after you joined. So each share is about $4.50 now. If you exercise your shares now they will be worth $18,000. This does not account for any dilution. 10-20% dilution is typical if you raised a big round.
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You need to know total shares outstanding.
Thanks! Is that something I can find in the contract? I purchased the shares at $0.90/share
No typically it won’t be in the contract. You’ll have to ask someone in the company for that number and they don’t have to tell you.