Paper RSUs (shares from private companies like Instacart, Stripe, DB, TikTok) are currently worth $0. Some companies may institute a buyback policy but the price offered is usually significantly lower than the price used in offer letters.
Given that for most startups, you get to keep vested RSUs even after you’ve left (up to a given period of time). Are there any big risks from accumulating so much paper money?
Multiple funding rounds could dilute RSU value and some companies just don’t want to go public (e.g Stripe).
Is it better to just go with offers from public companies that offer non-paper RSUs?
#tech #startup
Want to see the real deal?
More inside scoop? View in App
More inside scoop? View in App
blind
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
FOLLOWING
Industries
Job Groups
- Software Engineering
- Product Management
- Information Technology
- Data Science & Analytics
- Management Consulting
- Hardware Engineering
- Design
- Sales
- Security
- Investment Banking & Sell Side
- Marketing
- Private Equity & Buy Side
- Corporate Finance
- Supply Chain
- Business Development
- Human Resources
- Operations
- Legal
- Admin
- Customer Service
- Communications
Return to Office
Work From Home
COVID-19
Layoffs
Investments & Money
Work Visa
Housing
Referrals
Job Openings
Startups
Office Life
Mental Health
HR Issues
Blockchain & Crypto
Fitness & Nutrition
Travel
Health Care & Insurance
Tax
Hobbies & Entertainment
Working Parents
Food & Dining
IPO
Side Jobs
Show more
SUPPORT
FOLLOW US
DOWNLOAD THE APP:
comments
The premise is silly. RSUs have a $0 book value, but that’s good because it means you don’t need to pay taxes to hold an illiquid investment. The intrinsic value is much more than $0. If you think there’s a chance the company won’t IPO then you can mark the value down to adjust for risk, but not to $0.