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We are finally about to reach the promised land

Every startup ever is willing to give a ton of equity and tell you it'll be worth a shit ton of money once they IPO. But how often does it actually happen? It feels like more often than not, they either go under or get bought out, and all those RSU's end up just being a cool thing you got to brag to your friends about when you started the job.


Heard a rumor recently that my company is announcing their IPO date this week. Beyond pumped for this if it is actually true. The last several all-hands meetings they've just been saying "soon".


Anyone else been at a company that actually ended up IPO'ing and having shares worth real money? Did you sell them at their vest date or hold them?

Sell or Hodl
Attached poll
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๐Ÿ’ธ Investing
๐Ÿ’ด Money Management
๐Ÿ“‰ Equity
17
Tres
Politicker
6
Account Executive
Yes. Sold a handful at their vest date and then kept the rest to gradually sell over time. The taxes are brutal if you try to sell too much at once
NotCreativeEnough
Politicker
1
Professional Day Ruiner
Based on the way ours are set up, I believe I have to pay income tax on them as they vest, not when I sell. I could be wrong on that, they're supposed to be giving us more info on it
Sunbunny31
Politicker
3
Sr Sales Executive
Absolutely take all the info that is provided, and talk to your accountant as well.ย  ย Tax implications can be really an issue.
NotCreativeEnough
Politicker
1
Professional Day Ruiner
good point. I need to find a good accountant. I moved states recently and need to find someone in my new area. Tax time this year I used my old guy but it was a PITA having to mail them everything and do it all over zoom
Tres
Politicker
0
Account Executive
In that case I'd still sell only a portion and diversify away from them later - unless you feel the price is too good now and doubt it'll go up in the next 12-36 months
braintank
Politicker
2
Enterprise Account Executive
Been through an IPO and an acquisition. In both cases I sold ASAP and put the capital into more diverse investments.ย 

These were both under different market conditions, so might behoove you to hold vs sell.

However, I subscribe to the mantra that I'm investing in the company by working there. If I'm overloading my portfolio with stock from the company I'm working at I'm putting too many eggs in one basket.
NotCreativeEnough
Politicker
0
Professional Day Ruiner
I'm kind of leaning towards sell half to diversify, and keep half in the company as I feel pretty good about our long term growth. We're super late to the game to IPO (over $5billion valuation) with a lot of cool stuff on the roadmap so I don't think holding some would be a bad play.ย 
braintank
Politicker
1
Enterprise Account Executive
Also, if your company offers and ESPP, enroll! It's literally free money.
NotCreativeEnough
Politicker
0
Professional Day Ruiner
yeah all of that is TBD still. In our last all hands they told us details on that will all be announced for us along with the IPO announcement.ย 
TennisandSales
Politicker
1
Enterprise Account Executive
really cool! I would keep your expectations low....just because your company IPO's it does not 100% guarantee that YOU will get money.ย 

BUT for sure an exciting time i hope you get a ton of $$$$$
NotCreativeEnough
Politicker
1
Professional Day Ruiner
I'm hearing a lot of predictions, some absurd and some more realistic as far as the share price is going to be. I'm trying to keep expectations realistic and not get too excited thinking I'll wake up and be a millionaire. Because chances are, that one won't happenย 
CuriousFox
WR Officer
1
Senior Account Executive
I'd consult with an accountant.ย 
NotCreativeEnough
Politicker
1
Professional Day Ruiner
absolutely. gotta make sure I can cover the tax bill that will follow...
JDialz
Politicker
1
COO
I love working with folks whose company goes public. When your shares vest its a taxable event, so might as well move them somewhere to diversify and achieve growth while substantially reducing concentration risk and volatility.

Congrats in advance!
Hoopnip
Opinionated
1
Commercial AE
RSUโ€™s are taxed at vest. Can be great if the company is doing well and growing like a weed. Can be terrible for tax purposes in this current market if you didnโ€™t sell during the peak of the tech market the last 1.5 years.
NotCreativeEnough
Politicker
0
Professional Day Ruiner
yeah I was pretty sure that's how RSU's worked. I can cash out 25% per year starting February of next year. So that may just have to be the play to cover the tax bill
SalesGrit
1
Senior AE
Sold soon after lockout, regretted it a month later and beyond. Hard to generalize but if you believe in the company worth holding on. In my case, despite the market conditions and volatility, worth 3x more today than when I sold.
Justatitle
Politicker
1
Mid Market AE
Depending on the taxes and a few other factors my inclination would be to hold.ย 
Blackwargreymon
Politicker
1
MDR
Yes. Sold a handful at their vest date and then kept the rest to gradually sell over time. The taxes are brutal if you try to sell too much at once
Pachacuti
Politicker
0
They call me Daddy, Sales Daddy
My last company went IPO last year with the most minimal notice possible to employees.ย  Gave us all options with a $52 price.ย  Just checked...they're trading at $19 and some change today.ย  ย 
NotCreativeEnough
Politicker
1
Professional Day Ruiner
ouch. I'm glad we have RSU's instead of options. Then they're guaranteed to be worth something at least. $19 would be a kick in the teeth but better than 0 when they're free stocks I suppose....
doingthehustle
Good Citizen
0
Most Recently Account Director
No IPO but the company was bought and my options vested. That said, it was once a Unicorn status company but didnโ€™t live to itโ€™s status and shares didnโ€™t really gain any value.