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If that is less than 1/3rd what your shares would be worth if you sold them as part of the funding round you're not getting fair value. You have to decide wheth
by tommynicholas 9y ago
If that is less than 1/3rd what your shares would be worth if you sold them as part of the funding round you're not getting fair value. You have to decide whether you want fair value or not, but ~1/3rd the value of the shares in this funding round (assuming those investors got preferred shares, etc) is the low end.
Investors in the round would probably buy your shares for 1/3rd - 2/3rds of their value and you should consider asking if that's an option and then negotiate from there. The only reason to let the company buyout your shares for a lowball offer is if you left the company after a short period of time without proper vesting and you want to do the right thing for the company's sake. Doesn't sound like that's the case.
- rhizome 9y agoThe lowest amount of "XX,000,000" is $10MM, which at 5% is $500,000. So yeah, less than 1/3.
- ScottBurson 9y agoWe don't know whether that's pre- or post-money (I'm not sure the OP is even clear on the difference). What we need here is the pre-money valuation, which could be quite low.
- deleted 9y ago[deleted]