determine private market FMV of a series E start up?
6d
6 Comments
I have an offer from a Series E startup. The offer FMV is double their FMV from June last year which I find excessive give the drop in valuations since November. How can I find the best possible private market value of the options offered?
Current TC - 210k
Offered TC - 260k
YOE (5)
comments
In reality FMV is probably way less. Ultimately it's what someone will pay for the company and that's obviously not a science.
And value to you is way way way less given risk of no exit / risk of it being not worth your capital to execute your options before they expire after you leave.
I also joined a series C company that got acquired in a fire sale. Good thing I didn't sink $ into it by executing options. That's the kicker no one thinks about. If you leave, you typically have a few months to exercise your options, which can cost you 10s to 100s of thousands in real cash. You'll have to ask yourself, "do you feel lucky, punk?"
Granted, you will have a good chance with a series E co.