About to start a new job at a start up where I got 20,000 options at ~2.50 strike price, company valuation of a ~$1B. My back of envelope math had future value at around $150-200K after 4 years assuming 4-5X growth. Anyone have any good start up option stories to fuel my optimism?

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4 to 5X growth in market with the fed pulling in liquidity? They need to have quite the moat in a high growth space... Not impossible but needs to be quite well positioned.

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Just depends on landscape in 4 years. Private markets are still chugging along nicely despite what’s happening in public markets (and shaping up to be another busy year for PE, VC, M&A), so assuming investors are still valuing you guys on revenue (now and in 4 years), 4x growth could potentially result in 4x EV growth depending on where multiples are then and assuming your company’s story hasn’t changed for the worse

Careful about dilution. And if the company sells via private sale, you might get screwed and get nothing.

All that is to say, forget that the equity exists for now. And when you join a startup, make sure it’s truly lead by a top tier founder

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Sorry that happened to you

Tbh pretty hard to speculate, a lot depends on whether management or the board wanted to be aggressive with the grant price or conservative. If I were you, I’d take the most recent round’s share price (the preferred round, not the common shares), multiply it by 4 (to mirror the estimated sales growth) and take the difference of that number and $2.50 and multiply the difference by the # of option shares you received. For now, I’d think of that number as your ceiling. Missing revenue targets, a good exit before you’re fully vested, a bad exit, etc are potential risks.

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What level are you? Did you negotiate options?

Going into Enterprise Account Exec role. Initial offer was 310K OTE 50/50 split with 10,000 options and I countered asking for 320 and 25,000 options, and they came back with 320 and 20,000 which I accepted. I had a second offer from another firm which likely helped.

10000 options or 100 options to buy 10000 shares ?

The option to buy 20,000 shares. They vest in chunks over 4 years so I wouldn’t have to buy them all at once.

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