4 ms·

As a developer/employee, is there any benefit to being at a company that has a super high valuation? Or being an early employee at a company that later gets one

As a developer/employee, is there any benefit to being at a company that has a super high valuation? Or being an early employee at a company that later gets one? It doesn't necessarily mean a good exit, right? Though I suppose if you trust the valuation then it might imply the chances are higher... (Had a phone call with a recruiter from here some months ago, never called them back to schedule an interview... vaguely wondering if I cost myself anything.)

mbesto 11y ago
Validation. "I was a lead developer at Company X, which rapidly grew from $1b to $10b during my time there."
- coffeemug 11y ago
  Or, even better: "I led engineering, and my valiant efforts grew Company X from $1b to $10b in two years." I hear this sort of stuff all the time (used to be mainly from business types, but engineers are catching on).
nl 11y ago
If there is an active secondary market[1] for the company then employees maybe able to sell their share (options). A valuation provides a new baseline for pricing them. [1] https://en.wikipedia.org/wiki/SecondMarket https://en.wikipedia.org/wiki/SecondMarket
stanleydrew 11y ago
Not sure this thread is the best place to get into all this, but in general unless you are one of the very earliest employees of a hugely successful startup you aren't really going to get rich on stock. It looks like Thumbtack was founded in 2008. All "early" employees would have joined before 2010. So I feel confident in saying that not joining "some months ago" didn't cost you anything. At the stage the company is at, the difference between the value of your stock grant back then and your stock grant now wouldn't be enough for them to probably care if you asked them to make up the difference as a signing bonus. The difference is likely low five figures at most. A high valuation definitely doesn't necessarily mean a good exit (exits are complicated, read up on participating preference multiples e.g.). And what you should really care about is valuation growth anyway. Anyone can buy an expensive diamond and sell it later at a similar price. Special things happen if you can get your hands on an expensive diamond that nobody else thinks is expensive yet.
morgante 11y ago
If you're an early employee, there are obviously monetary benefits. Even prior to an exit, there are secondary offerings or occasional company buybacks available at unicorns. Ignoring the monetary implications (which really only apply to early employees), a unicorn can definitely help your professional brand. Being able to say you were part of the team which grew from $Xm to $Xb is definitely a big deal and will lead to interesting opportunities down the line.

mbesto 11y ago

Validation. "I was a lead developer at Company X, which rapidly grew from $1b to $10b during my time there."

coffeemug 11y ago
Or, even better: "I led engineering, and my valiant efforts grew Company X from $1b to $10b in two years." I hear this sort of stuff all the time (used to be mainly from business types, but engineers are catching on).

nl 11y ago

If there is an active secondary market[1] for the company then employees maybe able to sell their share (options). A valuation provides a new baseline for pricing them. [1] https://en.wikipedia.org/wiki/SecondMarket https://en.wikipedia.org/wiki/SecondMarket

stanleydrew 11y ago

Not sure this thread is the best place to get into all this, but in general unless you are one of the very earliest employees of a hugely successful startup you aren't really going to get rich on stock. It looks like Thumbtack was founded in 2008. All "early" employees would have joined before 2010. So I feel confident in saying that not joining "some months ago" didn't cost you anything. At the stage the company is at, the difference between the value of your stock grant back then and your stock grant now wouldn't be enough for them to probably care if you asked them to make up the difference as a signing bonus. The difference is likely low five figures at most. A high valuation definitely doesn't necessarily mean a good exit (exits are complicated, read up on participating preference multiples e.g.). And what you should really care about is valuation growth anyway. Anyone can buy an expensive diamond and sell it later at a similar price. Special things happen if you can get your hands on an expensive diamond that nobody else thinks is expensive yet.

morgante 11y ago

If you're an early employee, there are obviously monetary benefits. Even prior to an exit, there are secondary offerings or occasional company buybacks available at unicorns. Ignoring the monetary implications (which really only apply to early employees), a unicorn can definitely help your professional brand. Being able to say you were part of the team which grew from $Xm to $Xb is definitely a big deal and will lead to interesting opportunities down the line.