https://stripe.com/newsroom/news/stripe-series-i-employee-liquidity
Yikes!! I would be pissed if I was an employee. Seeing your RSUs literally become 💩. Saw on threads, they are now valued at around $20/share 😳. Suck to have joined when they were valued at the $30-$40/share range.
Eh, it's just more "chunky" motion on the same trend as watching the public stock price fall. Employees are glad to have liquidity. What hurts is when a company abstains from updating their 409a, effectively giving out stock at a price that doesn't take recent macroeconomic effects into account. I joined at the $95B valuation, but always assumed a 50% overvaluation. Annual grant program means my next chunk of stock is more aligned with reality. Good to not have a 4y grant at an overvalued price.
Yeah, true but if you think about it, these RSUs tied to your overall worth/compensation. I agree that having liquidity must be a relief, but just hurts to see this unravel. No matter if it’s with Stripe or any company, hurts to see this happen to the employees. Yeah, the 4Y grant would have sucked to still be in affect. I agree, the $95B valuation was a too much but that’s because from the macroeconomic standpoint in 2021, everything was headed to the moon 🚀
The comments here are so stupid. Yes its a down round, yes the shares are cheaper. So is literally every other tech stock. Raising this much money in this environment is a great sign.
That valuation is still too high
Lol we are on a fixed dollar amount yearly RSUs so new vests will be at this down round price. People were angry that Stripe did this 2 years ago but I am definitely happy about it now.
Yeah agreed, but now you need to worry about not having a job.
Meh, I have no fear about getting laid off. Projecting much?
This is actually pretty good, let me explain why. If you held 1M in rsu as an early employee, and there are thousands such, you will be able to cash out. Depending on various factors, it will be minimum 500k assuming the worst case that you joined at ATH. Now in todays market, with that 500k, you can buy GOOG at $95, AMZN at $90 and so on. Now think about that GOOG employee joined at ATH with 1M stocks, and there are 10s of thousands such, you pretty much caught up to him.
Not just that, future yearly grants are at new valuation, so they could make $1M again. They'll need to raise again I guess or go public for that, but it's likely to happen. Fact that they are able to raise now when everything is down is solid
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Is this a down round basically?
Yes
www.google.com Type in “what is a down round” Read.