two start ups: X has raised 30M, you get 0.12% , Y has raised 90M, you get 0.072%. X is serial B, Y is serial C. which one is better? interms of value, Y is better; in terms of %, X is better. startup stock options is so tricky, your advice is appreciated.
Is that really the equity packages Bay Area startups are paying out? Where the hell is the payout for the risk? The vast majority never reach 1B unicorn status. I just joined a startup that had 10M funding and got 2.5%
That's crazy high, congrats you must be partner level. Founds are lucky to get above 5. You sure you won't be deluted?
Everyone has the same type of stock and it's written in the agreement everyone will get diluted equally when we hire more people or raise more money.
The one that is the better company. Both are likely to fail statistically so take the one that you enjoy, find most interesting, and had the better chance of suceeding. Ask all the typical startup questions, eg burn down rate etc. Also it's "series". Good luck!
That is pretty low on equity side. You may want to check if you could get options.
both are options
Oh, it is the amount raised rather than the valuation. So the $amount are only part of the answer. My take is in both cases your stock is worthless unless the company succeeds. So pick the one you believe will be successful in the long term. The rest will matter much less.
Assuming roughly equivalent trajectories and teams, X would be the better choice, but the strength of the team/leadership is the far more important thing to consider.
Why X?
There's a lot more to consider than what's here, but optimizing for a larger proportion of equity in the earlier stage company is more likely to give a greater return, all else being equal. There are other things like dilution, market, etc. to worry about, but in this case I'm assuming dilution won't reduce equity percentage below Y and they both have equal market opportunities, leadership, growth potential, etc.