4 ms·
Ask HN: What was the "value" of your shares when you joined your startup?
I wanted to create a poll but my karma is not high enough, so I'll have to stick to an Ask HN.
I read so many articles about first startup employees getting screwed from a financial point of view, and usually the rule of thumb is "unless you're very lucky and your company will sell/go public BIG, your economic reward will not be substantial".
So, fully aware of the literature around and of the basic math that can be done to confirm the previous sentence, my question for HN is: at the time you were hired as one of the first employees (non-(co)founder) in your startup (let's say for the sake of it < 10 employees), what was the post-money evaluation absolute value of your shares?
For the poll, I'd calculate it this way:
value = percentage_granted * post_money_valuation
I am really simplifying this, so let's just say I'm not interested in how much the salary cut was and what was the state of the investing or the specific risk of failure.
I really just want to know the percentage you were given relative to the value of the company decided by the investor(s) at the time you were hired.
Thanks.
- akavi 13y agoRemember that "post money valuation" is for preferred shares and options are usually granted on common shares. 409a valuations usually value common shares at a fraction of preferred shares, and for good reason.