How do RSUs work at Stripe? When you join FAANG+Microsoft and you get 160k in stocks you can assume that 12 months later you’ll have 40k in liquid money. But what about Stripe? When the stocks vest how do you make money?
That's the risk you take when joining a private company. You can't have it all
I joined a startup and had 40,000 shares (shares not dollar amount). eventually the dollar amount was $0! don't count on anything happening with those RSUs unless you see an IPO on the horizon.
I trust that stripe will survive given it's business model and revenue, but the valuation is nuts relative to their revenue, so I wouldn't be surprised it's value follows the same path that Uber, Lyft, Wework... did
I’m not arguing that the valuation is correct but it’s not really comparable to Uber, Lyft and Wework. Those companies have literally been lighting money on fire with negative unit margins.
The employment lottery. You win or you don’t.
I joined wework at a $10b valuation and saw it grew to $48b. My seven figures equity are worthless. :(
Out of interest who actually gave it the mythical $48b valuation?
Softbank. The bank with $100b vision fund.
Find out if they have an internal RSU trading scheme. In that way, you can sell your stocks off to other internal employees who are willing to buy
If a company has investors, there's usually a couple of ways it'll go. 1. IPO. Most likely (for stripe imo) 2. Acquisition. Second most likely (for stripe imo) 3. Dividends. Unlikely 4. Stock buyback. Also unlikely. 5. Go out of business and become worthless. Most common for startups. Unlikely for stripe.
Even if there’s an acquisition you may not get any money. Depends on how well the company was doing when it got acquired.
IPO is the most unlikely way for Stripe. No plan to go public, said CEO.