Yep, quick example -- company valued at $300M, 150M shares outstanding, options should be worth $2/share, right? Except if that company raised $100M to get tha

Yep, quick example -- company valued at $300M, 150M shares outstanding, options should be worth $2/share, right? Except if that company raised $100M to get that valuation, the preferred shares will certainly have at least a 1x preference. If they are fully-participating, the new math world make the shares worth ($300-$100) / 150M or $1.33/share. In round numbers, I worked for a similar company but they had to take a terrible down round post-GFC with 3x participating preferred. In that case the common options would literally be worth $0.