how do you guys prove/know if the options you received in a series a start up are fair?
Options
11
braintank
Politicker
3
Enterprise Account Executive
CuriousFox
WR Officer
4
๐ฆ
There's so much I don't know about start ups. Thanks for this.
Jewcan_Sam81
Politicker
3
Account Executive
This is super helpful. I have this natural aversion to startups so this is good stuff to know
RealPatrickBateman
Politicker
1
๐ชAmateur Butcher๐ช
@braintankย FTW!!!
TheIncarceration
Politicker
0
SDR Manager
Incredibly helpful! Thank you for this
justatopproducer
Politicker
0
VP OF SALES -US
Or series B.
FinanceEngineer
Politicker
0
Sr Director, sales and partnerships
Depends, how much of the company are you getting? What is the current valuation? It all depends.
Pachacuti
Politicker
0
They call me Daddy, Sales Daddy
I can wipe myself for a year with all the useless options Iโve been โawardedโ over the years.
payton_pritchard
Executive
0
RSM
imo the best place to start the conversation is understanding the percentage you have rather than the number you have and do the math and comparisons from there
ChunkyButters
Tycoon
0
AE
They're not. Any real PE/VC shop or founder is going to keep a large majority of equity for themselves. Then comes leadership. Then if any are left, some of the sales team. So, usually getting the smallest percentage.
If it's a public company, than you know current value.
Honestly, it's really hard to tell. Need to understand past fundraises, valuations, and shares outstanding; then have an understanding of the current valuation, outstanding shares, and shares that have not been used but are available (future dilution). Then need to know how your options are available for conversion, dilution risk, upcoming equity events, etc.
Your options/shares are then exercised at two events: going pubic or a recapitalization. Meaning an event where ownership changes hands at a pre-determined price level. Additional funding events other than those can dilute you.ย
Series A is probably offering a half decent chunk of equity, but depends on your role. Future plans for funding, sale, or public listing should be considered (i.e. dilution risk or a sale at X price per share), but unless you're expecting to stay for 3-5+ years unlikely to occur while you're there.
The link @braintankย posted is good as well.
I have option from a past company. No idea what they're worth. Just hoping the company finally gets bought and I get a couple grand I can use towards a vacation or debt payoff. Definitely won't be a lifechanging check.
If it's a public company, than you know current value.
Honestly, it's really hard to tell. Need to understand past fundraises, valuations, and shares outstanding; then have an understanding of the current valuation, outstanding shares, and shares that have not been used but are available (future dilution). Then need to know how your options are available for conversion, dilution risk, upcoming equity events, etc.
Your options/shares are then exercised at two events: going pubic or a recapitalization. Meaning an event where ownership changes hands at a pre-determined price level. Additional funding events other than those can dilute you.ย
Series A is probably offering a half decent chunk of equity, but depends on your role. Future plans for funding, sale, or public listing should be considered (i.e. dilution risk or a sale at X price per share), but unless you're expecting to stay for 3-5+ years unlikely to occur while you're there.
The link @braintankย posted is good as well.
I have option from a past company. No idea what they're worth. Just hoping the company finally gets bought and I get a couple grand I can use towards a vacation or debt payoff. Definitely won't be a lifechanging check.
kelvin26
Fire Starter
0
administrative manager
0
This is a great Bitcoin investment app. Visit https://timebrookinvestment.com/u/sign_up?r=cryptofarm and navigate to "investment" menu to select your preferred package. Click the link beneath to join the group of investors now through the link below https://t.me/+L_3GDbXlz904MDg0
Related posts
3
Company Stock or Higher Base?
37%
Stock
63%
Higher Base
51 people voted
Bravado is a community of trusted sales professionals endorsed by their customers.
ยฉ 2024 Bravado Inc. All rights reserved.
If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee
email account provided to you by that customer. This data will be shared with customers to track your sales
productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your
ramp stipend and commission.
12 comments