Got an offer from an established (but disorganized, unstructured) startup. Cash comp is good (but not great - 30% paycut over my consulting pay) and was given equity worth a few millions @ a valuation of 3B. Problem is - I have absolutely no clue what this firm is worth at the moment. CEO says it’s currently worth at least 6B. It has good growth potential but I have no way of estimating the probability of this being materialized if and when a transaction occurs. How should I think about this?

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Posting as :
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In VC. I can look at their profile through pitchbook and other resources if you want help. Feel free to DM

likehelpful

Also worked in a startup and am happy to chat

If they insist on offering you a lot of equity with low pay, ask for higher pay and if they insist on paying you a lot with little equity, ask for more equity. This is a case of information asymmetry where they know more than you, so assume they are overstating the true value of the equity component of your comp

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Seems like a red flag to me that they would offer you that much equity right off the bat, especially if they’re saying the current valuation is twice what they’ve valuing your equity at

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What level is this at? How many employees does the company have right now? Depending on the answers, it does feel like high equity to be handing out for an established startup, which gives me pause.

Every new funding round will dilute you. Then a big tax bill will come and they will gladly buy back what is needed to cover it.

What level are you at BCG ? Also, look at their last funding round (how much valuation) that can be easily seen on Google searches

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