How much extra stock would you ask for from Uber compared to a public company like Google or Facebook?
Extra? People are joining with a cut
I turned down Uber for FB. FB equity was $500K, Uber offered $700K. I wanted at least $1M, so 2x for me
May of us joined Uber as we believe the stock is under-valued and will pop significantly on IPO and beyond. Meaning it’s a bargain to join now, given the impact we have in changing transportation across the globe. I think we’re on the same growth path as Amazon. If you want predictability and lower risk/reward, def join a public company.
Salesforce is twice as Uber’s value as of now. Snap ipo’ed at half of Ubers valuation with only 1/20 of Uber’s revenue and no profit. Let these sink in for a moment. If you believe Uber’s value is going to go up a lot after ipo you should join. Otherwise don’t.
Is IPO really happening at the end of 2019?
Uber’s finances are public. There is little that will be revealed publicly at IPO that is not known. There have been significant funding/tender offers lately, so you know that smart money has had a chance to evaluate the businesses and make sizable bets. Given what is already publicly known, you can safely assume that they made informed decisions. However, the recent rounds are not what one should expect the market as a whole to price Uber as the money coming in was strategic (think, does SoftBank bring anything else other than money to the table). Personally I think that the Uber board traded off a higher price for a more strategic partner. At IPO, the number of investors will increase by a fraction far higher than the supply of shares. Thus, I maintain that we shall definitely IPO at a higher price. We will however, only IPO in late 2019 based on public info. You will be locked out for six months. So you do have an opportunity cost for the money for two years (or one year, if you leave your current company and join another for a cliff of a year). IMHO, these two effects cancel out. You are getting a discount. But you cannot touch your money for a couple of years. Future growth, personal growth, impact are all gravy.
So if it balances out, are you saying that Uber stock should match G, FB, etc with an 1:1 ratio?
2X what Goog or FB gives
How much extra will Uber give?
10x