Ask HN: Need help in understanding private equity offer

Re:Ask HN: Need help in understanding private equity offer by thoughtstheseus on Monday May 30, 2022 @11:29AM (#31560042)

The $70 billion valuation is suspect. Far too high for nearly all early stage companies. SpaceX raised last year (?) around $100 billion for reference.

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Re:Ask HN: Need help in understanding private equity offer by pgwhalen on Monday May 30, 2022 @12:02PM (#31560381)

I think you misspoke? No company in history has ever raise $100b in a year, but that’s about what SpaceX is valued at now.

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Re:Ask HN: Need help in understanding private equity offer by qeternity on Monday May 30, 2022 @12:51PM (#31560899)

OP clearly means they raised around a $100b valuation.

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Re:Ask HN: Need help in understanding private equity offer by thoughtstheseus on Monday May 30, 2022 @06:32PM (#31564333)

Perhaps I was not clear enough ;). Thank you for clarifying, much appreciated.

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Re:Ask HN: Need help in understanding private equity offer by pgwhalen on Monday May 30, 2022 @01:05PM (#31561078)

That’s why I assumed it and politely clarified.

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Re:Ask HN: Need help in understanding private equity offer by s1artibartfast on Monday May 30, 2022 @12:32PM (#31560703)

Spacex has raised about 8B total since founding in 2002

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Re:Ask HN: Need help in understanding private equity offer by bspear on Monday May 30, 2022 @03:16PM (#31562573)

Think OP meant $70M not $70B if they just raised $17M in funding.

To calculate your gross $ value today, you need to know your # of shares (10K) divided by total fully diluted outstanding shares (607,500,000) multiplied by the valuation (probably $70M).

Strike price is your cost to exercise the options, which should be deducted from your gross value. You will likely also incur taxes unless you exercise right away via 83B election

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Re:Ask HN: Need help in understanding private equity offer by thoughtstheseus on Monday May 30, 2022 @06:35PM (#31564362)

The value is $0 today because there is no market (it’s an early stage startup) where you could sell those shares(?)

The shares are a lottery ticket at best unless you have conviction in the companies ability to succeed and become more valuable overtime.

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Re:Ask HN: Need help in understanding private equity offer by tracker2020 on Monday May 30, 2022 @03:25PM (#31562662)

$70M valuation makes more sense.

Only 10K shares feels very low though if there are really 607M outstanding shares (seems too high). It's Seed-Series A, your friend should be getting at least 0.1% even as a junior IC: : https://topstartups.io/startup-salary-equity-database/

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Re:Ask HN: Need help in understanding private equity offer by nivertech on Tuesday May 31, 2022 @07:18AM (#31568249)

IMO something is wrong with this database: most of the pre-seed startup entries have market* salaries.

*) might be below today's market, but still not something a pre-seed startup could pay their employees.

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