Role: staff engineer, Base : 225k Yoe: 12 Stock options 15000 (0.05%) w/4 yr vesting and 1 yr cliff @ $2 strike Currently valued at $6 ($200M valuation) Does that sound reasonable or low ??
Which company?
It is in mortgage industry
Where’s the office located and will you have to come back to it? Trying to adjust for COL
Office is in SF .. but wfh for near future and also possibility to continue
Not terrible, not great. What’s your yoe and current tc?
Looks like a great offer, congrats. Base is very good. You can probably push for more options / sign on bonus.
What is series A and series B amount like. What is the business domain? If you think the company has good potential, enough cash for 2 years, and founders are capable you can go for it.
Business domain is mortgage Series A valuation was $75M at about 3/share.. series B valuation is about $175M at $6 Company has enough cash reserves for now and is not in hurry for next round.
Better.com ??
What % outstanding shares is this? .045%?
0.05%
Not bad! I think I've seen .1% at highest for staff
What does 4 year cliff mean?
1 year cliff, so no vesting in first year and then every month
Ah ok. That sounds reasonable
Looks great
How can you have a $2 strike if it’s valued at $6 already? Options are priced at FMV. My only assumption is last round raised was at $2 a share and they EXPECT to get $6 at the next round.
I was told its discounted price to FMV
Options are common hes referencing the preferred stock price which is sold to investors. Lazy math is common is worth 20 to 40% of preferred. Should also have a 409A valuation backing that up with a valuation that high and recent funding.
That’s a good base so maybe worth it for that reason alone. Remember with options priced like that, they often write it in there that you forfeit them if you leave unless you pony up the money to exercise ($30K in your scenario). That also incurs a tax liability even though you make no money (yet).
I like that offer