If I'm offered pre-IPO equity at $x amount based on the last round of funding, and then an IPO values the company at 25% more, is that equity automatically with 25% more or is it not that simple?

Obviously understand that stock value will fluctuate.

Posting as :
works at
You are currently posting as works at

If you are offered actual shares at say $20 and the IPO is at $30 - your shares are worth $30 or whenever you sell.

If you are offered options at $20 and the IPO is $30, your equity is whenever you sell minus the $20.

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Thanks. It would be shares.

No. New shares are usually created during funding rounds, so share price goes up less than valuation.

As an example, I own Nextdoor shares worth USD 14.50 each from when the company was valued at 1.2bn. The valuation later almost doubled to 2.2bn but my share price only went up to USD 20.39 cause more shares were issued

This probably doesn’t apply if the company does a direct listing, in which case no new shares are created.

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Make accounts on EquityZen and Forge. They give you estimates for how many shares outstanding pre ipo companies have at each funding round. Then Google how many shares outstanding those companies had at IPO (this is public information)

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Don't forget about any lockup periods that may apply

How are you getting a Pre IPO offering?

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