simple question about equity negotiation
Sep 1, 2018
9 Comments
Negotiating with a Google bet. I have a competing startup offer. Google bet also gives stock options so they are similar in that regard. When I told the recruiter my other offer I told him the equity value as the
# of stocks x (latest funding round value - exercise price)
Is that how you communicate the equity or do you just ask for the # of stocks x (latest funding round value)
The difference in this case is 30% so I am wondering if I shot myself in the foot.
comments
# of stocks x (latest funding round value - exercise price)
then you are saying the current worth is not comparable and it all depends on future growth rate
If a startup grows 10x while the other grows only 3x, then the 10k difference in their offers won’t matter.
Pick a startup based on their potential upside, not based on current offer.