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> the upside of infinity dollars It would be better to use the market cap of the currently dominant company in the sector to compute the upside (unless the sta
by gary_0 4y ago
> the upside of infinity dollars
It would be better to use the market cap of the currently dominant company in the sector to compute the upside (unless the startup is doing something completely novel, like autonomous robotics or nuclear fusion, in which case the risk is so high there's no point in doing the math.)
- lumost 4y agoNever the less, thats what this is usually sold as. For Series B+ companies, the marginal probability that they only achieve marginal equity growth is quite high. This is problematic for the employee, as there is no natural stopping point after Series B - one could labor indefinitely for worthless equity. Seed and A are really just getting off the ground, and agree that if a preference stack matters - the startup likely failed to get off the ground.