ipsy offer - please help evalutw
[edit] asking for a friend: current offer from ipsy is: 190k base 10k stock options (strike price of five dollars and value of 160k as a conservative estimate) 1 year cliff. I have 7 YOE - struggling to evaluate the stock options. feels like its super low. how does one go about doing this? #ipsy
Think about how much the value of those options can multiply over next 2-5 years. You would want that 160k to become 4x 8x 16x... And don't forget it will cost you at least 50k to exercise those options. Ask about post termination exercise window.
Is this usual though, for companies to offer options like this? Upside aside, there should be a current compensation value for each offer right?
Yes I believe they do have some allocation and target for how much they want to grant. With stock options there is a cost to acquire the stocks, so unless they are cheap you need to consider how much of your time and money is going to be worth risking for those options.
160k for 4 years? That seems so low, is that even comparable to your Airbnb comp?
My apologies, I’m asking for a friend.
Hopefully its not too late, but your friend should run, as fast as they can, away from IPSY. It is a trainwreck.
Its not going anywhere, ask them what the exit plan is.
They are profitable
So it’s a lifestyle business for the founders?