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Figured I'd share this since its comp info you don't normally see. A lot of people made a lot of money today. I got 150,000 options for Reddit very early after
by exreddit 3y ago
Figured I'd share this since its comp info you don't normally see. A lot of people made a lot of money today. I got 150,000 options for Reddit very early after it was spun out. With today's price, that's $7.5M, but I didn't get all 4 years of vesting, the pay was below-average, and my money was tied up. During the same decade, the faangs were up 12x on average, but the pay was better, and my money would have been liquid. Reddit might not hold up for 6 months, either.
- fragmede 3y agoWhy didn't you take a deal with a secondary market buyer? Quid or SecFi or whatever
- krallja 3y agoRegardless of what price they quote in their emails, I’ve heard that Quid will only loan you a quarter of the FMV of your shares, at 15% APR (deferred) — plus 5.5% of your shares outright, which increases annually. It sounds like a horrible deal.
- fragmede 3y ago100% of $0 is $0. Even 25% of $7.4m is $1.8m
- mattmanser 3y agoDid you miss the key words of LOAN and 15% APR?
- JumpCrisscross 3y agoYou should be able to get a non-recourse loan, i.e. where you never owe more than the stock is worth. That said, Reddit was one of the more secondary-unfriendly firms, if memory serves correctly, if you didn’t have Board or senior management connections.
- fragmede 3y agoit's a non-recourse loan though, so if Reddit didn't IPO and you can't pay, you don't owe money you don't have.
- krallja 3y agoThese shares weren’t ever worth $7.4m at FMV.
- toomuchtodo 3y agoThanks for sharing, always fascinating to see different lottery tickets.