a current price per share of X. If the company is valued higher at the next round, how will my shares gain value? Isn’t the point of more rounds and an IPO to create more shares? Is the value X meaningless as more shares get created?
Honestly I wouldn’t even consider a negotiation on shares without talking to a buddy that has done it multiple times and knows how to model them. There’s ways to do this.
I’m confused. To napkin math “value” your shares just take the total shares outstanding and the valuation of the company right now.
The reality is you probably don’t know some key factors such as the actually equity structure (class A, class B, etc.). Also, doesn’t seem like you know the revenue or any relevant financial information to your company which would even help understand current valuation. Unless you know latest fundraising efforts that pegged you guys at a total number.
Staying on my comment stream. Reread your post in the comments. There might be 1 million shares issued and there may not be new shares issued per say if the founders are just going to be releasing shares out of their pot.
I’m guessing they don’t even know what routes they are going yet.
I think you just need to look at this as a nice future pay out and not stress the valuation aspect.
You just don’t know if the company is going to need money one day or do a capital raise that could continue to change the cap structure.
Coach
What’s the current value of the shares? I work at a series d and have 4200 shares at $20 per share.
I would hope that your share price is like $300 if you only received 300 shares
*arent
a current price per share of X. If the company is valued higher at the next round, how will my shares gain value? Isn’t the point of more rounds and an IPO to create more shares? Is the value X meaningless as more shares get created?
Will my shares ever appreciate pre-ipo as the company gets valued higher and higher?
yes
Mentor
Honestly I wouldn’t even consider a negotiation on shares without talking to a buddy that has done it multiple times and knows how to model them. There’s ways to do this.
I’m confused. To napkin math “value” your shares just take the total shares outstanding and the valuation of the company right now.
The reality is you probably don’t know some key factors such as the actually equity structure (class A, class B, etc.). Also, doesn’t seem like you know the revenue or any relevant financial information to your company which would even help understand current valuation. Unless you know latest fundraising efforts that pegged you guys at a total number.
Not sure if this is helpful at all.
Staying on my comment stream. Reread your post in the comments. There might be 1 million shares issued and there may not be new shares issued per say if the founders are just going to be releasing shares out of their pot.
I’m guessing they don’t even know what routes they are going yet.
I think you just need to look at this as a nice future pay out and not stress the valuation aspect.
You just don’t know if the company is going to need money one day or do a capital raise that could continue to change the cap structure.