Job isn’t as lucrative as other jobs, golden handcuffs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Exactly - while I understand that this round of fundraising was really difficult with the economy, the good companies were able to pull through. I would question why they weren't able to get funding, what their runway is, how long before they start laying off, etc. If they didn't get funding, their runway starts to diminish. If they are going for funding, they can't stand on their own feet so there is a runway.
I know this because I am in the same situation.
Also - that seems like an awful lot of shares for someone that may be low senior level. How many shares are outstanding?
It is a crapshoot and I would be looking very hard at how secure my job if I am supporting my whole family before I look at winning the lottery with golden handcuffs.

They DID get funding. And are going to go through another round. They will probably be acquired by another company, not go public if they do an exit. There are 59m shares outstanding. Yes low senior level but major contributor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round.

Well you seem to have snorted the company kool-aid thru your nose, so no idea why you are lamenting the lower income for a couple of years when you feel guaranteed to have a multi million payout soon. Some people have real hardship to make a fraction of that…

[Anonymous]

You poor baby, your life sounds really hard, your sugar daddy is not making enough money, wah wah wah.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round. [/
Well you seem to have snorted the company kool-aid thru your nose, so no idea why you are lamenting the lower income for a couple of years when you feel guaranteed to have a multi million payout soon. Some people have real hardship to make a fraction of that…

No but you’re insistent that I need to pay attention because they are doing layoffs and not getting funding and that’s not the case and not really a consideration when making a decision. The company is doing well. I don’t see what people having hardship has to do with the question. This shouldn’t be so personal to you. It’s a finance forum. It’s not about drinking the kool aid, that’s why I am asking.

[Anonymous]

Anonymous wrote:You poor baby, your life sounds really hard, your sugar daddy is not making enough money, wah wah wah.

This is a really emotional response to a man anonymous finance forum. Hope you’re doing ok.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round. [/
Well you seem to have snorted the company kool-aid thru your nose, so no idea why you are lamenting the lower income for a couple of years when you feel guaranteed to have a multi million payout soon. Some people have real hardship to make a fraction of that…

No but you’re insistent that I need to pay attention because they are doing layoffs and not getting funding and that’s not the case and not really a consideration when making a decision. The company is doing well. I don’t see what people having hardship has to do with the question. This shouldn’t be so personal to you. It’s a finance forum. It’s not about drinking the kool aid, that’s why I am asking.

Oh I see, I’m sorry you misunderstood.

EVERY company that may buy your DH company is having layoffs. Tech starts are cutting left and right especially but even Meta Google are looking at headcount.

So the founders received an offer that would have valued it your bit at $4M? And the company is profitable? Then you maybe okay even though the stock market has changed. I’m a little surprised they told staff they had an offer like that, as I’m sure the founders got some cash with the new financing but it means everyone else doesn’t get to liquidate any — that usually brings bad blood.

There is an economic bloodbath happening, unprofitable tech is especially vulnerable, but if you are profitable it means you won’t run out of money and can weather it. I just suspect it will be long enough until your exit that you will wonder is out the difference in salary. 6 years of that is a lot of money.

But he’s stable right, they won’t cut him right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:You poor baby, your life sounds really hard, your sugar daddy is not making enough money, wah wah wah.

This is a really emotional response to a man anonymous finance forum. Hope you’re doing ok.

"man anonymous finance forum"?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round. [/
Well you seem to have snorted the company kool-aid thru your nose, so no idea why you are lamenting the lower income for a couple of years when you feel guaranteed to have a multi million payout soon. Some people have real hardship to make a fraction of that…

No but you’re insistent that I need to pay attention because they are doing layoffs and not getting funding and that’s not the case and not really a consideration when making a decision. The company is doing well. I don’t see what people having hardship has to do with the question. This shouldn’t be so personal to you. It’s a finance forum. It’s not about drinking the kool aid, that’s why I am asking.

Oh I see, I’m sorry you misunderstood.

EVERY company that may buy your DH company is having layoffs. Tech starts are cutting left and right especially but even Meta Google are looking at headcount.

So the founders received an offer that would have valued it your bit at $4M? And the company is profitable? Then you maybe okay even though the stock market has changed. I’m a little surprised they told staff they had an offer like that, as I’m sure the founders got some cash with the new financing but it means everyone else doesn’t get to liquidate any — that usually brings bad blood.

There is an economic bloodbath happening, unprofitable tech is especially vulnerable, but if you are profitable it means you won’t run out of money and can weather it. I just suspect it will be long enough until your exit that you will wonder is out the difference in salary. 6 years of that is a lot of money.

But he’s stable right, they won’t cut him right?

Why so rude? They have money leftover from B but had such a big interest they will do a C round so it seems to be doing fine. I don’t think he would be someone cut. I think you’re just being highly emotional about this. It’s an anonymous finance forum. No need to call names. Sugar daddy? I’m a public school teacher. My job is important too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You poor baby, your life sounds really hard, your sugar daddy is not making enough money, wah wah wah.

This is a really emotional response to a man anonymous finance forum. Hope you’re doing ok.

"man anonymous finance forum"?

an anonymous finance forum

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round. [/
Well you seem to have snorted the company kool-aid thru your nose, so no idea why you are lamenting the lower income for a couple of years when you feel guaranteed to have a multi million payout soon. Some people have real hardship to make a fraction of that…

No but you’re insistent that I need to pay attention because they are doing layoffs and not getting funding and that’s not the case and not really a consideration when making a decision. The company is doing well. I don’t see what people having hardship has to do with the question. This shouldn’t be so personal to you. It’s a finance forum. It’s not about drinking the kool aid, that’s why I am asking.

Oh I see, I’m sorry you misunderstood.

EVERY company that may buy your DH company is having layoffs. Tech starts are cutting left and right especially but even Meta Google are looking at headcount.

So the founders received an offer that would have valued it your bit at $4M? And the company is profitable? Then you maybe okay even though the stock market has changed. I’m a little surprised they told staff they had an offer like that, as I’m sure the founders got some cash with the new financing but it means everyone else doesn’t get to liquidate any — that usually brings bad blood.

There is an economic bloodbath happening, unprofitable tech is especially vulnerable, but if you are profitable it means you won’t run out of money and can weather it. I just suspect it will be long enough until your exit that you will wonder is out the difference in salary. 6 years of that is a lot of money.

But he’s stable right, they won’t cut him right?

Why so rude? They have money leftover from B but had such a big interest they will do a C round so it seems to be doing fine. I don’t think he would be someone cut. I think you’re just being highly emotional about this. It’s an anonymous finance forum. No need to call names. Sugar daddy? I’m a public school teacher. My job is important too.

Again, there seems to be some confusion. I never said anything about sugar daddy or anything.

I actually am worried you and your DH are being taken for a ride; I’m invested because it happened to a relative of mine, promised startup riches and ended up with worthless options after years of hard work and turmoil (they actually ended up divorced).

If you are confident he won’t be cut that’s great. It’s really strange though if they had that much interest and a full price offer for acquisition, they could have shopped it around and cashed out even higher. It sounds like instead they did what happened at my relatives company; the funding round cashed out a lot for the founders but was not a liquidity event for the rest of the staff.

But if you are sure they are profitable, you can definitely sit out the next 5 years while we grind through the “fleece vest recession” — it just seems like with the rosy but vague predictions, no IPO (?), the lower salary , it feels dicey.

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Anonymous wrote:At the previous company he had about .15 percentile and now he has around 1 percentile of the total options pool.

Well that is good, if he has 1% that’s a valuation of $400M which is not unreasonable.

That’s a huge amount of equity for a double digit employee hire, which is weird with lower salary — it would seem they really wanted him, did he they give him choice of equity or salary?

Are they profitable? With current downturn, funding will be drying up and acquisitions may hinge on more than revenue.

https://www.ft.com/content/7cbae3f3-8197-4816-aba8-860cac76cbb4

Yes it’s profitable. I don’t think so. The comp plan is just not as favorable as previous jobs, where he averaged $500+ several
years ago. It’s just a pretty big hit on our day for day spending. Any money we received from past jobs when into the market or savings.

If it’s profitable really surprised they didn’t go public last year rather than fundraising.

Revenue producing? Maybe that’s different. The valuation is under $500m. It’s only a few years old. I don’t think there is any plan for it to IPO ever. It seems similar to his last company which was acquired. That’s what I know. From what I’ve heard they are doing well and having no issues fundraising. It’s just a big question mark when an exit especially since he can be making significantly more elsewhere. He doesn’t want to leave but he’s not the one that does our family’s finances and budgeting. We live in HCOL area and we got used to his previous pay so it requires some changes. I would hate for him to give up that income for a few years and the company for some reason doesn’t have an exit.

Revenue is not profit, you can drive a lot of revenue by selling two dollars for a one dollar price, that’s a standard Internet me.

What do you mean they have no plans to IPO? What is their expected exit? Lots of companies, like large, take companies are laying off now, so I don’t think they would be looking to do an acquisition and take on more stuff with a unprofitable business?

I would really take a hard look at the long-term plan here, and try to see what the real valuation, it sounds like that’s just with their internal person to try and find a company.

I think it would be more likely they were acquired. They are hiring now, not laying off. It’s still under 150 employees. It’s not an internal person coming up with the valuation, it’s a 409a valuation.

The 409a just represents what the founders and investors negotiated as “value” for the stake they are getting vs money in. It in no way reflects any kind of market value. Not sure why you are hung up on how they came to valuation; if they aren’t profitable it’s a crapshoot.

Who is going to be doing acquisitions in this environment? Most tech startups and even big tech are looking at layoffs, their stock value is down, and borrowing capital to pay for acquisition would be more expensive than any time in last decade. You expect some cash rich company to swoop in and buy it out for $0.5B?

They are having no issues getting funding and they are hiring. There aren’t layoffs so it’s not across the board. They already received an offer for the value but are raising another round. [/
Well you seem to have snorted the company kool-aid thru your nose, so no idea why you are lamenting the lower income for a couple of years when you feel guaranteed to have a multi million payout soon. Some people have real hardship to make a fraction of that…

No but you’re insistent that I need to pay attention because they are doing layoffs and not getting funding and that’s not the case and not really a consideration when making a decision. The company is doing well. I don’t see what people having hardship has to do with the question. This shouldn’t be so personal to you. It’s a finance forum. It’s not about drinking the kool aid, that’s why I am asking.

Oh I see, I’m sorry you misunderstood.

EVERY company that may buy your DH company is having layoffs. Tech starts are cutting left and right especially but even Meta Google are looking at headcount.

So the founders received an offer that would have valued it your bit at $4M? And the company is profitable? Then you maybe okay even though the stock market has changed. I’m a little surprised they told staff they had an offer like that, as I’m sure the founders got some cash with the new financing but it means everyone else doesn’t get to liquidate any — that usually brings bad blood.

There is an economic bloodbath happening, unprofitable tech is especially vulnerable, but if you are profitable it means you won’t run out of money and can weather it. I just suspect it will be long enough until your exit that you will wonder is out the difference in salary. 6 years of that is a lot of money.

But he’s stable right, they won’t cut him right?

Why so rude? They have money leftover from B but had such a big interest they will do a C round so it seems to be doing fine. I don’t think he would be someone cut. I think you’re just being highly emotional about this. It’s an anonymous finance forum. No need to call names. Sugar daddy? I’m a public school teacher. My job is important too.

Again, there seems to be some confusion. I never said anything about sugar daddy or anything.

I actually am worried you and your DH are being taken for a ride; I’m invested because it happened to a relative of mine, promised startup riches and ended up with worthless options after years of hard work and turmoil (they actually ended up divorced).

If you are confident he won’t be cut that’s great. It’s really strange though if they had that much interest and a full price offer for acquisition, they could have shopped it around and cashed out even higher. It sounds like instead they did what happened at my relatives company; the funding round cashed out a lot for the founders but was not a liquidity event for the rest of the staff.

But if you are sure they are profitable, you can definitely sit out the next 5 years while we grind through the “fleece vest recession” — it just seems like with the rosy but vague predictions, no IPO (?), the lower salary , it feels dicey.

Have you actually worked for a start up? This just seems like a lot of speculation on your part. Most do not cash out in a B round, especially when the company itself is so young.
The company seems very similar to the last one which we road out for 2 years for a few hundred thousand. It sold far under what was expected but his percentile of equity was under .2 percentile. It’s higher this time and hoping for a similar outcome. The other company sold during the “recession”..

[Anonymous]

I mean, this is the thing with startups. You accept lower cash compensation for the chance of a larger payout down the road. You have to decide what your risk tolerance is. Do you prefer security and relatively knowable compensation? Then a startup might not be for you. Are you young without major financial responsibilities? Are you already wealthy and not in need of a high income? Then a startup can be a great idea.

DH and I have worked for startups that had successful exits. In hindsight it was worth it to stay, but we had LOTS of convos about that tradeoff above.