Re:Ask HN: How do I gauge the value of stock options that I ...
by throwaway_9989 on Sunday November 21, 2021 @11:52PM
(#29302888)
The preferred price is about $0.9 (I heard it's been like this for the last 2 rounds). Does that mean the current valuation of the company is $49M?
The parent comment is also correct. We've experienced a down round due to the pandemic.
Re:Ask HN: How do I gauge the value of stock options that I ...
by comp_throw7 on Monday November 22, 2021 @12:07AM
(#29302972)
If the company's gone through a down round, it's very likely they took funding on unfavorable terms (i.e. worse than 1x liquidation preference), which makes it that much less likely your (non-preferred) equity would ever be worth anything. Take the cash offer (though, if you're in the US and have 4 years of experience, $120k is a bit of a joke too; you should be able to do substantially better even limiting yourself to full-remote companies).
Re:Ask HN: How do I gauge the value of stock options that I ...
by rkk3 on Monday November 22, 2021 @12:54AM
(#29303249)
> If the company's gone through a down round, it's very likely they took funding on unfavorable terms (i.e. worse than 1x liquidation preference), which makes it that much less likely your (non-preferred) equity would ever be worth anything
which is expressed in the preferred share's being valued at 13x the common shares
That is not the valuation of the company, not all shares outstanding are common, some are preferred which are going to have a substantially higher FMV for an early stage.
I don't know what a "normal" multiple/mark-up preferred would normally have at this stage, obviously it varies on terms. 55M shares outstanding this early would not be the sign of a "healthy" cap table unless they didn't start with the standard 10M outstanding.