At Valuation, ppl who joined Instacart 3-4 years ago were given the options/RSU? https://t.co/F6gQe8DdvB
Anyone who didn’t expect this coming was living under a rock all this time. Atleast they’re able to go IPO.
If you joined in 2021? How much are you left with after dilution and a 75% drop in stock price? Barely 10% of your original stock grant??
Don't forget about taxes too :) 🥜🥜
Equity is a bonus.
Insta destruction wow ! Market is brutal !!
20 yr old VC’s got FOMO’ed and found out.
The AMT horror stories from this are going to be really sad. It’s such a fucked up tax and only screws over the early team not the investors.
Do employees who joined 3-4 years ago have options below the valuation now or they under water ?
Lode lag gye haha
No you guys. People exercised options, based on the spread between the 409a and your strike, you owe taxes on that via AMT. you pay tax even though you only made a hypothetical profit and not a cash one. If the shares you bought are worth less than what you got taxed at then that sucks. Now there are exemptions so it depends on the person
All those funding rounds during COVID likely have liquidation preferences... so the common stock will get a big hair cut..
I'm stupid, can you explain
That doesn't apply in an IPO. In an IPO, all preferred shares got converted to common shares.