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what does pulling betas mean?
Additional Posts in Consulting Exit Opportunities
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what does pulling betas mean?
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Super simple approach - ask what the value per share was at the last round of funding. If the company is successful and growing, round up from there. Won’t be exactly right but will be as accurate as any other approach for valuing startup equity
Black-Scholes
Ask for their latest audited financials and build your own DCF model obviously
Depending on their size they will have either last funding round or last 409A valuation. Generally your options grant strike will be at that price. So then you gotta guess where they will be when liquidity event(ipo, acquisition etc) happens, and when that event will happen.
Options kinda suck. They are lotto tickets, would not give them much value when considering comp.