Comment by tormeh
Depends. Some options only vest in the case of an "exit event", i.e. an acquisition or an IPO. At this point I would assume such options are borderline worthless.
Depends. Some options only vest in the case of an "exit event", i.e. an acquisition or an IPO. At this point I would assume such options are borderline worthless.
> Yeah I think this is how it usually works, and yeah at $100bn valuation they are now 100% worthless, because investors get paid first, and there's no way they'll get sold or IPO for more than $100bn.
Not quite right? Because the raise-implied valuation doesnt account for preferences. The IPO could be for 50bn and the latest investors could do well given the preference stack of first money outs in later rounds.
Yeah I think this is how it usually works, and yeah at $100bn valuation they are now 100% worthless, because investors get paid first, and there's no way they'll get sold or IPO for more than $100bn.