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Correct me if I'm wrong. But from what I tested you get $0 unless the IPO/sell is over $40M. No matter if Seed or Series C or how much of the company you own.
by i_live_ther3 9y ago
Correct me if I'm wrong. But from what I tested you get $0 unless the IPO/sell is over $40M. No matter if Seed or Series C or how much of the company you own.
- alain94040 9y agoYes, but the default is set to the employee getting 0.01% of a company that raised series A. That's a very pessimistic percentage. Think of it this way: the startup could hire 100 employees, each at 0.01%, and only give up 1% of its total equity. That's way too low. Typical grants for post-series A employees (the 10 to 50 first employees) are at least 10X more than that. With that calculator, you get something (~ $20K) for a $40M exit. Not 0. Not amazing either.
- eridius 9y agoThe "How We Guesstimate" answers this. (Exit Price < Money Raised) ? $0 And the site is assuming the company raised $41M in funding.
- mjmayank 9y agothat's because of liquidation preference. they assume the company has raised $41M
- bethly 9y agoThat is correct! Rather than try to distinguish the Series A startups that exit during Series A from Series A startups that are going to raise more money before exiting successfully, I just assumed that every company raised the average amount that a successful startup raises. That average isn't stage-specific either. This was one of the places where the model could be a lot more accurate, but at the cost of much more complicated math.