Negotiating with a startup / preipo company

Intuit
oHqB02

Go to company page Intuit

oHqB02
Apr 8 6 Comments

I was going to sign an offer from a fintech startup today. But at the moment i am hesitant because their last round of funding they were valued at X billion. But most public and private companies had their valuation slashed by half. Can someone give guidance if i could use that for negotiation? Or if should just join a public company like legal zoom with matching offer with title bump?

Current TC 270k
New TC 470k

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TOP 6 Comments
  • Tesla
    kusm

    Go to company page Tesla

    kusm
    Ask for fundamentals data
    If they're not willing to share, their valuation is bullshit
    Apr 8 3
    • New
      nrgoisjd

      New

      nrgoisjd
      Ask and maybe you shall receive. And if you think they’re cooking the books, don’t join
      Apr 8
    • Tesla
      kusm

      Go to company page Tesla

      kusm
      If they misrepresent you can sue them
      Apr 8
  • Plaid
    squizzle

    Go to company page Plaid

    squizzle
    Depends what company. You can try saying you don’t think the valuation would hold up under 2022 markets, but they can easily argue against, since they have the fundamental data and you don’t (revenue, profit margins, cac, etc.)

    Plus, any illiquid startup will argue that you’re joining for growth and not today’s value. Do you think the core business is strong? I’d ask about fundamentals before trying to arbitrarily negotiate the $ amount of the equity. Runway, burn rate, etc.
    Apr 8 1