Series B/C Start up offer

New
uQPC31

New

uQPC31
Mar 23 12 Comments

Got an offer for a Series B start up who is in the process of raising series C. They said they don’t have the money in the bank but want to value my shares based on series C valuations. They have listed the investors and strategics (verbally) that they have terms sheets for. They have 4x valuation over last year. They claim to be able to be able to at least 10x valuation from here.

Everything else looks good. Strong team with solid investors on the board with experience growing portfolio >$10B+ companies. Anyone else experience this before? I’m coming from a tier 2 FAANG company.

Start up offer:

TC: $300k
$200k base
$400k over 4 years


Blind tax:

Current TC $450k

$220k base
$30k bonus
$200k rsus (for 2022)

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TOP 12 Comments
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    • Uber
      lxleifu

      Go to company page Uber

      lxleifu
      Depends on your risk appetite! But saying with absolute certainty that he should take cash is not the best advice
      Mar 23
    • New
      uQPC31

      New

      uQPC31
      OP
      Increase on base would be minimal ~10% and not life changing. Rather ask for more equity.
      Mar 23
  • New
    HNlC

    New

    HNlC
    seems ok. don’t take the offer until the C money is in the bank. if you take the offer now, you’ll be diluted by the raise. in addition to the offer being on the C valuation/terms
    Mar 23 2
    • New
      uQPC31

      New

      uQPC31
      OP
      Thanks that’s good advice. Should the overall TC in today’s value from start up be less than TC coming from FAANG?
      Mar 23
    • New
      HNlC

      New

      HNlC
      ignore today value. today value of equity is $0. the today TC is just the cash part
      Mar 23
  • New
    ijagpkzw

    New

    ijagpkzw
    What’s their current valuation?
    Mar 23 1
    • New
      uQPC31

      New

      uQPC31
      OP
      Series B is $300M series C is $1.2B. 100x forward ARR for 2022.
      Mar 23
  • Plaid
    yulovit

    Go to company page Plaid

    yulovit
    IMO sketch to offer the equity at series C price before it’s raised, though by the time your grant is approved it may be likely the round is closed (and the 409a is increased)
    Mar 23 1
    • New
      uQPC31

      New

      uQPC31
      OP
      Do you mean 409a might increase the valuation higher than current C valuation? If so, why?
      Mar 23
  • Amazon
    CoolRunnin

    Go to company page Amazon

    CoolRunnin
    And the offer is .... ? Not quite sure what you wants us to evaluate.
    Mar 23 1
    • New
      uQPC31

      New

      uQPC31
      OP
      See above
      Mar 23