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When I got multiple startup job offers, I realized how hard it was to project out a realistic value behind the equity. Guessing future valuations, dealing with

When I got multiple startup job offers, I realized how hard it was to project out a realistic value behind the equity. Guessing future valuations, dealing with dilution, and running through endless scenarios was a headache—so I built Comparator. Comparator is a simple, free, open-source tool to help you cut through the complexity of startup compensation. Quickly see what your equity might actually be worth, factor in dilution, and easily compare your offers side by side. It’s completely free, no signups, your data never leaves the browser. Check out the app here: https://comparator-one.vercel.app https://comparator-one.vercel.app Check out the code here: https://github.com/DevonPeroutky/comparator https://github.com/DevonPeroutky/comparator

codingdave 1y ago
> figure out the real value behind the equity. Zero. Equity is a bonus in case things work out. But for the purpose of deciding on offers - zero.
- esafak 1y ago
  You'd be remiss if the company is growing and has an IPO schedule. The uncertainty over equity reduces over time. Some people hop from pre-IPO company to pre-IPO company.
- MediumD 1y ago
  While I think it’s good advice to live as if the equity is worth zero, treating all equity as if its worth nothing, seems a bit over-reductionist when equity packages can routinely be worth millions of dollars. Obviously it’s a crapshoot and should never be seen as a guarantee, I think treating it as zero is bit too far on the opposite extreme.
  - stuckonempty 1y ago
    How did you get to equity packages being “routinely” worth millions when tech startups fail somewhere between 75% and >99% of the time (depending on estimates)? Seems far more likely that startup equity will be worth zero to typical individual contributor employees, not millions
    - mhlakhani 1y ago
      Case in point: 2 years ago i interviewed at a number of places with mind boggling valuations and most of the places I got offers from either no longer exist or laid off half their staff. It’s a lottery
      - jjmarr 1y ago
        Lottery tickets still have value.
        mcosta 1y ago
        Usually negative value.
    - MediumD 1y ago
      Of course most startups fail, and most equity is worth nothing. I guess I didn’t think “routinely” implied a specific percentage, just that it isn’t uncommon for options to be worth a lot. If even 5–10% of VC startups succeed, then it’s still worth considering the expected value of the equity when comparing job offers.
      - 1dom 1y ago
        > just that it isn’t uncommon for options to be worth a lot. You're deluding yourself here. On average, the vast, vast majority of equity options, _especially_ in the VC backed tech world, turn out to nothing for the employee. You literally built a tool because there's so many variables, and in the majority of cases, all these variables do not align in a way that results in a payment. This is almost the literal definition of "uncommon". It is uncommon for options to materialise into a large amount of value for employees. I respect your tool, and I respect what you're doing. But you need to be honest with yourself and the rest of the world. If you want to help young or new people in this area, then don't perpetuate the myth that startup tech company options are statistically any better than a lottery ticket.
    - virgilp 1y ago

codingdave 1y ago

> figure out the real value behind the equity. Zero. Equity is a bonus in case things work out. But for the purpose of deciding on offers - zero.

esafak 1y ago
You'd be remiss if the company is growing and has an IPO schedule. The uncertainty over equity reduces over time. Some people hop from pre-IPO company to pre-IPO company.
MediumD 1y ago
While I think it’s good advice to live as if the equity is worth zero, treating all equity as if its worth nothing, seems a bit over-reductionist when equity packages can routinely be worth millions of dollars. Obviously it’s a crapshoot and should never be seen as a guarantee, I think treating it as zero is bit too far on the opposite extreme.
- stuckonempty 1y ago
  How did you get to equity packages being “routinely” worth millions when tech startups fail somewhere between 75% and >99% of the time (depending on estimates)? Seems far more likely that startup equity will be worth zero to typical individual contributor employees, not millions
  - mhlakhani 1y ago
    Case in point: 2 years ago i interviewed at a number of places with mind boggling valuations and most of the places I got offers from either no longer exist or laid off half their staff. It’s a lottery
    - jjmarr 1y ago
      Lottery tickets still have value.
      - mcosta 1y ago
        Usually negative value.
  - MediumD 1y ago
    Of course most startups fail, and most equity is worth nothing. I guess I didn’t think “routinely” implied a specific percentage, just that it isn’t uncommon for options to be worth a lot. If even 5–10% of VC startups succeed, then it’s still worth considering the expected value of the equity when comparing job offers.
    - 1dom 1y ago
      > just that it isn’t uncommon for options to be worth a lot. You're deluding yourself here. On average, the vast, vast majority of equity options, _especially_ in the VC backed tech world, turn out to nothing for the employee. You literally built a tool because there's so many variables, and in the majority of cases, all these variables do not align in a way that results in a payment. This is almost the literal definition of "uncommon". It is uncommon for options to materialise into a large amount of value for employees. I respect your tool, and I respect what you're doing. But you need to be honest with yourself and the rest of the world. If you want to help young or new people in this area, then don't perpetuate the myth that startup tech company options are statistically any better than a lottery ticket.
  - virgilp 1y ago