4 ms·

Took the following from https://medium.com/positiveslope/dont-get-trampled-the-puzzle-for-unicorn-employees-8f00f33c784f#.trvm56ujn https://medium.com/positives

Took the following from https://medium.com/positiveslope/dont-get-trampled-the-puzzle-for-unicorn-employees-8f00f33c784f#.trvm56ujn https://medium.com/positiveslope/dont-get-trampled-the-puzzl... "Another interesting idea to reduce complexity for employees came from Brian Neider at Lead Edge Capital, who suggested a single question for employees to ask management: “Can you please let me know how much money I’d make from my options if the company were to sell or IPO for $100m, 200m, 300m, 400m, etc?” Of course, the answers will inevitably have some disclaimers and dependencies, but the answers will expose the potential impact of terms from late-stage financings."

zeroer 10y ago
As others have pointed out, this is impossible to determine without knowing the dilution between today and the sell date.
- edraferi 10y ago
  True, but this should be a straightforward calculation every time the cap table updates. It can be very difficult to work out the implications of preferences, ratchets, etc, but it's still just a math problem. This should be a standard report off of cap table management software. Every time the cap table changes, all current equity holders get a report showing their stake and expected payout for various liquidity events.
  - rlucas 10y ago
    Well, except it's not straightforward, almost ever. New investment rounds dilute the common share equivalent ownership, but also add preferences and sometimes other economic rights. Also, banker fees, earnouts, etc etc. I don't disagree that it would be helpful and is a step in the right direction. But it would have to come with tons of disclaimers. And, even the best cap table management software is rather poor, and its calcs get duplicated or discarded in favor of spreadsheets done by lawyers.

4 ms·

Took the following from https://medium.com/positiveslope/dont-get-trampled-the-puzzle-for-unicorn-employees-8f00f33c784f#.trvm56ujn https://medium.com/positives

by preetish 10y ago

zeroer 10y ago
As others have pointed out, this is impossible to determine without knowing the dilution between today and the sell date.
- edraferi 10y ago
  True, but this should be a straightforward calculation every time the cap table updates. It can be very difficult to work out the implications of preferences, ratchets, etc, but it's still just a math problem. This should be a standard report off of cap table management software. Every time the cap table changes, all current equity holders get a report showing their stake and expected payout for various liquidity events.
  - rlucas 10y ago
    Well, except it's not straightforward, almost ever. New investment rounds dilute the common share equivalent ownership, but also add preferences and sometimes other economic rights. Also, banker fees, earnouts, etc etc. I don't disagree that it would be helpful and is a step in the right direction. But it would have to come with tons of disclaimers. And, even the best cap table management software is rather poor, and its calcs get duplicated or discarded in favor of spreadsheets done by lawyers.