throwaway1124

4 ms·

1. 1.▲
   by throwaway1124 11y ago

   Even if they raised a convertible note or pure debt (which is atypical of a First Round Capital led round), it is unlikely that their 409A led to an extremely low FMV. Even a company that raises $2M in debt at a $6M cap would likely have a
2. 2.▲
   by throwaway1124 11y ago

   I'm not suggesting that the valuation is truly worth $1.2M but if they did a 409A valuation or had their board decide on the FMV to determine strike price, the value would be at least 15% of the post-money valuation. My point is simply
3. 3.▲
   by throwaway1124 11y ago

   I agree. I think that in the earliest stages, startups should consider "bonus-ing" out the employees to exercise their options early. I'm wondering what the consequences/disadvantages would be for the startup.
4. 4.▲
   by throwaway1124 11y ago

   I appreciate the thinking here and message but am concerned about this line "This will cost a few hundred dollars at most". Clearbit has raised a $2M seed round from top-tier investors implying a post-money valuation likely over $
5. 5.▲
   by throwaway1124 11y ago

   In seed stage companies, what is the disadvantage of enabling your employees to early exercise and bonus-ing or loaning them the capital to do so? The advantage seem clear: employees can get 25-35% more equity at effectively no cost differe