Tech Industry
Yesterday
3590
Job market is brutal for SWEs 🥲
World Conflicts
Yesterday
275
Since people still can’t wrap their minds around the fact the Gaza death toll hasn’t changed
Tech Industry
Yesterday
1730
Meta E6 offer.
Tech Industry
Yesterday
196
Is Python a good choice for backend MVP
Tech Industry
6h
1054
How bad is it in meta?
I've been getting hit up by a bunch of startups recently probably because my equity at Snap is down the toilet right now (RIP, F for respects), but I don't see how startups are doing any better and if anything, doing worse due to the lack of liquidity. For example, I spoke with Rippling https://equities.fyi/company/rippling. I don't think the revenue numbers on the site are totally wrong as Rippling reported that they are making "over $100M of revenue today", so doubling that amount to $250M~ seems actually really generous. On the public market, Snowflake, which is considered "best in class" is able to get a multiple of 17.5x. So let's assume Rippling, is the best of the best. Even giving it a generous 25x multiple on generous revenue numbers, the estimated valuation is only $6.5B, about half of the valuation it got last year. Wait... what? I actually brought this concern up with the recruiter and I basically got a "non-answer" response. Literally along the lines of, "Take a look at our investors. Do you think they would have invested if we were doing poorly?" 🤔🤔 Well, that's not really my concern... my concern is if I joined a startup right now and the valuation was overpriced, that would mean it would take many more years for it to be worth something, correct? Or in a bad case scenario where the company needed to get acquired, then I'd be at the bottom of the liquidation stack meaning my stock options would be worthless, right? Another company that reached out that I absolutely cannot understand is Instacart. https://equities.fyi/company/instacart The public comparisons here show that Uber and Lyft are barely getting 1x multiples. Doordash appears to be getting around 4x. I double checked the information on equities.fyi vs official news I could publicly find and it's true that Instacart's revenue is indeed around $1.8B last year, during the pandemic, mind you, when everyone was probably ordering everything online. Since Instacart is nearly an IPO, I would imagine the public comps would be very much similar to DoorDash. Even in the most generous case where we give Instacart a ridiculous 8x multiple, that's only a valuation of $14B, which is still LESS THAN HALF of its $39B valuation. Insane. I really don't get it. What am I missing here? Maybe people more savvy with investing can explain to me how Instacart was able to justify such an enormous valuation? I basically don't even want to try to interview there because even if I got the job, the equity would be virtually worthless. Like even if they gave me infinity options, they'd all be underwater, and maybe take 2-3 years just to break even, right? To be fair, I don't think ALL startups are in this situation. For those that are cash flow positive and didn't raise at a massive overinflated valuation, it seems like a great place to be actually and looking through equities.fyi, I see some great nuggets in here. They are mostly companies that weren't in the most "hyped" sectors (cough, Fintech, cough) which I think spared them quite a bit. Anyways, just wanted to share the thoughts. I'm curious, for those that work at startups right now, are CEOs addressing this internally? Are they making you "whole" and readjusting your equity packages? For those that are receiving startup offers, are you asking for revenue / growth and burn numbers? Are recruiters willing to give these numbers out to you? #instacart #rippling #equity #salary #recession
Many pre ipo companies had inflated values. Idk how Bolt was worth 10 billion at one point. But check again instacarts valuation tanked 40% recently. It’s now only worth 25bn. The bottom isnt in yet so we’ll have to see after the dust settles lol
bolt revenue is 50m if I remember correctly.
If I’m interviewing with a startup equity is barely going to factor into the equation.
If rippling revenue doubles this year, which seems plausible given their new offerings, then suddenly their valuation is much more palatable. I think rippling will have an easier time continuing their growth than Instacart which, as you mentioned, is still touting revenues during the pandemic. Context is important when deciding to join because no pre IPO startup is already worth their valuation if they were on the public market rn
I kind of agree with OP. Even if Rippling revenue doubles this year, 11.3B is still way too high. Might be worth joining for the high base salaries. But, RSU might as well consider them only 20 to 30% of its offered value as of now. Too many things have to go right for Rippling to succeed. I think the only reason investors actually funded the last round was because of the growth from 2020 to 2021. But, that amount of revenue growth is unsustainable. Not a lot of growth in the HR market either, their only hope is to persuade current users in the market to switch over. Not a lot of new users, so low expansion of the HR tech customer base. I will be joining Rippling soon as well, but let's be realistic about these RSUs. Very unlikely they will be worth much within 4 to 5 years, if at all.
For those that are receiving startup offers, are you asking for revenue / growth and burn numbers? Are recruiters willing to give these numbers out to you? - Yes, after you get an offer they 100% will or at least should, if not run because they are sketchy af
Instacart updates its valuation and the equity you get (RSU, not options) will be based on the latest valuation so I’d say now is a great time to join.
With the big stock dips, public company is obviously better choice
what’s the 3rd company?