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Yeah, I feel like getting a full picture of the health and investment of a company you are working at would be nice. At my last company, they would announce ho
by madamelic 9y ago
Yeah, I feel like getting a full picture of the health and investment of a company you are working at would be nice.
At my last company, they would announce how much we had in the bank and how long the runway was at every all-hands and other stats about investments.
Understanding the acquistion priority / leverage (I forget the phrase for it. Basically how much the investors have to make before the money trickles down), how much your potential shares are diluting, etc are important.
Unfortunately I think it is better for companies to keep this info close to the chest, especially in badly-run companies or green-behind-the-ears founders (who agree to bad terms because of inexperience)
- ptero 9y agoThat's why I would like to see a statistical data point for a successful startup (say, limited to 100M+ valuations). Yes, companies are different; some may need to raise more and some less, but if I knew how much, on average, 1% stock at seed translates at 100M buyout it would be a valuable data point.
- madamelic 9y agoDefinitely. Yours is pre-computed, my suggestion / comment was just about giving raw stats for employees to compute and verify themselves. I guess yours is more palatable to give out than giving the raw stats that can be leaked.
- clairity 9y agoliquidation preferences, or rachets as they're sometimes called. founders should be very wary of such things. (other) investment terms should already account for the investment risk, otherwise the deal is mispriced and should be reworked to remove rachets.