3 ms·
You need to know the fully diluted count of shares. After that, calculate how much of the company you beneficially own assuming full vesting, and start wargami
by patio11 10y ago
You need to know the fully diluted count of shares. After that, calculate how much of the company you beneficially own assuming full vesting, and start wargaming out scenarios of exits at $500 million, $1 billion, $2 billion, $5 billion, $10 billion, $25 billion, $50 billion, etc. It's 4th grade math with bigger numbers: 1 bps * $10 million = $1k; 1 bps * $1 billion = $100k; etc. (bps = "basis point" = 10^-4)
You might also try asking the question "I'm trying to value my options. Do you have any financial results or model which would suggest I value them upwards?" HN readers might if surveyed pick "Options are basically witchcraft" but this is very, very not true of CFOs at billion dollar companies. The information you want exists in a spreadsheet somewhere; nobody is going to hate your guts for asking to see it. (They might not say yes but, hey, that's signal, too.)