4 ms·

The $70 billion valuation is suspect. Far too high for nearly all early stage companies. SpaceX raised last year (?) around $100 billion for reference.

pgwhalen 4y ago
I think you misspoke? No company in history has ever raise $100b in a year, but that’s about what SpaceX is valued at now.
- s1artibartfast 4y ago
  Spacex has raised about 8B total since founding in 2002
- qeternity 4y ago
  OP clearly means they raised around a $100b valuation.
  - pgwhalen 4y ago
    That’s why I assumed it and politely clarified.
  - thoughtstheseus 4y ago
    Perhaps I was not clear enough ;). Thank you for clarifying, much appreciated.
bspear 4y ago
Think OP meant $70M not $70B if they just raised $17M in funding. To calculate your gross $ value today, you need to know your # of shares (10K) divided by total fully diluted outstanding shares (607,500,000) multiplied by the valuation (probably $70M). Strike price is your cost to exercise the options, which should be deducted from your gross value. You will likely also incur taxes unless you exercise right away via 83B election
- tracker2020 4y ago
  $70M valuation makes more sense. Only 10K shares feels very low though if there are really 607M outstanding shares (seems too high). It's Seed-Series A, your friend should be getting at least 0.1% even as a junior IC: : https://topstartups.io/startup-salary-equity-database/ https://topstartups.io/startup-salary-equity-database/
  - nivertech 4y ago
    IMO something is wrong with this database: most of the pre-seed startup entries have market* salaries. -- *) might be below today's market, but still not something a pre-seed startup could pay their employees.
- thoughtstheseus 4y ago
  The value is $0 today because there is no market (it’s an early stage startup) where you could sell those shares(?) The shares are a lottery ticket at best unless you have conviction in the companies ability to succeed and become more valuable overtime.

pgwhalen 4y ago

I think you misspoke? No company in history has ever raise $100b in a year, but that’s about what SpaceX is valued at now.

s1artibartfast 4y ago
Spacex has raised about 8B total since founding in 2002
qeternity 4y ago
OP clearly means they raised around a $100b valuation.
- pgwhalen 4y ago
  That’s why I assumed it and politely clarified.
- thoughtstheseus 4y ago
  Perhaps I was not clear enough ;). Thank you for clarifying, much appreciated.

bspear 4y ago

Think OP meant $70M not $70B if they just raised $17M in funding. To calculate your gross $ value today, you need to know your # of shares (10K) divided by total fully diluted outstanding shares (607,500,000) multiplied by the valuation (probably $70M). Strike price is your cost to exercise the options, which should be deducted from your gross value. You will likely also incur taxes unless you exercise right away via 83B election

tracker2020 4y ago
$70M valuation makes more sense. Only 10K shares feels very low though if there are really 607M outstanding shares (seems too high). It's Seed-Series A, your friend should be getting at least 0.1% even as a junior IC: : https://topstartups.io/startup-salary-equity-database/ https://topstartups.io/startup-salary-equity-database/
- nivertech 4y ago
  IMO something is wrong with this database: most of the pre-seed startup entries have market* salaries. -- *) might be below today's market, but still not something a pre-seed startup could pay their employees.
thoughtstheseus 4y ago
The value is $0 today because there is no market (it’s an early stage startup) where you could sell those shares(?) The shares are a lottery ticket at best unless you have conviction in the companies ability to succeed and become more valuable overtime.