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0 pointstherobots9272y ago0 comments

I worked for a startup where I repeatedly asked basic questions to estimate the value of my shares. I never got a straight answer. So I applied to a FAANG and got in. When I was onboarding the FAANG asked what my shares I was leaving behind were worth (they take this number and use it to calculate starting bonus). I had no idea, gave an honest estimate, and later found out that I had given them a number about 60% lower than the true value. I'll never forgive the startup execs for keeping me in the dark, or ever work for a company again that doesn't make that information freely available. One of my favorite memories was walking out the door of that place.

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jey2y ago

> asked what my shares I was leaving behind were worth

I always decline to answer these questions by saying "it's not relevant; I'd like to be compensated according to my background/experience and the role". If there's a specific number I'm looking for, I'll also ask for that. But I'd never directly answer the "what was your last salary/comp?" question.

fatnoah2y ago

I flat out never trust any numbers from startups. Some companies are still using the SaaS 10-13x revenue as an estimation, despite the current economic climate and often in spite of a) not reqlly being a SaaS and b) not growing that fast.

Throw in liquidation preferences, etc. and it's not really possible to know anyway. I've been at three startups. Two were acquired and one is still plateaued over 10 years after I left. Total value of my stock so far? $0.

It'd have to be some rare unicorn for me to treat startup options as anything other than a lottery ticket.

choppaface2y ago

I’ve had two offers where only the number of shares was quoted, one of them from a YC alum. One now has a record of making false statements about their valuation and has gone under, the other got sold for pennies. If they only give you number of shares it’s a big red flag and could be outright fraud.

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