Re:What I Wish I'd Known About Equity Before Joining a Unicorn
by econner on Wednesday January 18, 2017 @03:02PM
(#13429776)
What makes you so sure? Say the company is valued at $300M when you join. $100,000 worth of ISOs is 0.03% which is not unreasonable if you're an engineer from say employee 5 to employee 50 or so. Now, the company becomes a unicorn valued at $3B which is 10x.
Re:What I Wish I'd Known About Equity Before Joining a Unicorn
by jonathankoren on Thursday January 19, 2017 @01:03AM
(#13433447)
I'm not saying that the basis points are unreasonable. I'm saying that my salary is more than $100,000.
The uncertainty around the current valuation (which everyone has due to the infrequency of material events), the uncertainty around the likelihood of a major liquidity event, its size, and its type make ISOs incredibly hard to accurately price. If anyone says they can do it accurately, they're lying.