Re:The Reddits
by exreddit on Thursday March 21, 2024 @06:02PM
(#39784945)
Figured I'd share this since its comp info you don't normally see. A lot of people made a lot of money today. I got 150,000 options for Reddit very early after it was spun out. With today's price, that's $7.5M, but I didn't get all 4 years of vesting, the pay was below-average, and my money was tied up. During the same decade, the faangs were up 12x on average, but the pay was better, and my money would have been liquid. Reddit might not hold up for 6 months, either.
[ Parent
| on HN ]
Why didn't you take a deal with a secondary market buyer? Quid or SecFi or whatever
Regardless of what price they quote in their emails, I’ve heard that Quid will only loan you a quarter of the FMV of your shares, at 15% APR (deferred) — plus 5.5% of your shares outright, which increases annually.
It sounds like a horrible deal.
100% of $0 is $0. Even 25% of $7.4m is $1.8m
Re:The Reddits
by mattmanser on Friday March 22, 2024 @02:52AM
(#39788012)
Did you miss the key words of LOAN and 15% APR?
Re:The Reddits
by JumpCrisscross on Friday March 22, 2024 @08:00AM
(#39789792)
You should be able to get a non-recourse loan, i.e. where you never owe more than the stock is worth. That said, Reddit was one of the more secondary-unfriendly firms, if memory serves correctly, if you didn’t have Board or senior management connections.
it's a non-recourse loan though, so if Reddit didn't IPO and you can't pay, you don't owe money you don't have.
These shares weren’t ever worth $7.4m at FMV.
what was the 409a?
Did you really just ask for a 409a in a public forum? You do realize those are closely guarded secrets?
Re:The Reddits
by toomuchtodo on Thursday March 21, 2024 @10:22PM
(#39786842)
Thanks for sharing, always fascinating to see different lottery tickets.