Ask HN: Share Price of ESOP

Posted by kathylenk on Saturday October 26, 2024 @01:24AM
from the ask-hn dept.

Hi HN,

I have the situation that I am in negotiations with investors to sell part of my ESOP.

We raised a successful series A in the past couple of months and the investors claim that discounts of 30-40% of ESOP are deemed "normal", because they have no LiqPref and voting rights.

To me that seems to be too much, so I'm asking whether you have any experience with such a sale and what should be an acceptable discount.

Thank you!

( 2 comments | on HN )

Re:Ask HN: Share Price of ESOP by KaisoEnt on Saturday October 26, 2024 @01:50AM (#41952844)

argue for a lower discount (20-30%) by emphasizing the company’s growth and recent valuation from the Series A round, which shows that your shares still have strong potential value even without the extra protections

[ Parent | on HN ]

Re:Ask HN: Share Price of ESOP by alexanderjarvis on Sunday October 27, 2024 @05:57AM (#41961204)

You have not provided enough info.

Selling out at s-a normally implies leverage and it sounds like you don't have any which is an oxymoron.

You could have sold pari passu if the round was oversubd etc

[ Parent | on HN ]