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TLDR Stock Options

tldroptions.io

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Re: TLDR Stock Options

#171

Post by austenallred »

mgummelt wrote: post #148
austenallred wrote: post #143

Earlier quoted context omitted.

Product market fit and further growth are generally pretty correlated, though

Yes, but growth and appreciation are (theoretically) not. Growth is priced in. You're saying product-market fit -> growth -> appreciation. The first part of that is true. The second isn't. Assuming market efficiency, the VCs know just as well as I do that the company is going to grow, so they'll pay a higher rate, which means my options will be priced higher (or I'll get fewer RSUs, accordingly). Growth does not impl…

Assuming market efficiency at series B is quite a leap, IMO. That said, let's roll with that assumption; you need to find a company that continues to grow, or in some other way derisks itself.

Re: TLDR Stock Options

#172

Post by [deleted] »

eries wrote: post #3

Our goal with building this was not to be comprehensive, but to give founders and employees a way to have a more productive conversation about options and what they are worth. Too many startup employees I meet don't properly value the options they have, and too many potential hires don't negotiate for the right things, and wind up disappointed. We hope this will take a small step towards correcting this problem.

[deleted]

Re: TLDR Stock Options

#173

Post by mifeng »

eries wrote: post #3

Our goal with building this was not to be comprehensive, but to give founders and employees a way to have a more productive conversation about options and what they are worth. Too many startup employees I meet don't properly value the options they have, and too many potential hires don't negotiate for the right things, and wind up disappointed. We hope this will take a small step towards correcting this problem.

For many years, startups have exploited the opacity of potential outcomes to trick employees into thinking that their equity is worth more than it likely is.

A couple of years ago, I asked AngelList's CTO if I could utilize their data to build something like this; he never got back to me, so I moved on. Really glad to see this project live!

EDIT: Just realized this came from the fine folks at LTSE. Awesome stuff, Tiho!

Re: TLDR Stock Options

#174

Post by kgwgk »

jacquesm wrote: post #100
s73ver wrote: post #99

Earlier quoted context omitted.

If they've taken VC funding, they most likely are.

The percentage of companies that have taken VC funding and that eventually IPO is far smaller than the percentage that either become a going concern or that end up being acquired by another company or by a private equity party.

Do you mean "cease to be a going concern"?

Re: TLDR Stock Options

#175

Post by jacquesm »

kgwgk wrote: post #174
jacquesm wrote: post #100

Earlier quoted context omitted.

The percentage of companies that have taken VC funding and that eventually IPO is far smaller than the percentage that either become a going concern or that end up being acquired by another company or by a private equity party.

Do you mean "cease to be a going concern"?

No.

Re: TLDR Stock Options

#177

Post by GlennS »

johnny99 wrote: post #14

This is fantastically useful both as a side-of-the-barn estimator, and a teaching tool. Thanks! Two things a lot of startup employees are unaware of that are worth highlighting: they actually have to buy their options, which eats into returns, and that if they leave the company they have a limited window (30 days, typically) in which to do so. In would behoove them to save/plan for this fact.

What's the reason for these companies offering stock options rather than just stock?

Re: TLDR Stock Options

#178

Post by kgwgk »

jacquesm wrote: post #175
kgwgk wrote: post #174

Earlier quoted context omitted.

Do you mean "cease to be a going concern"?

No.

Ok, I thought you meant "becoming a going concern" as an alternative to an IPO (an IPO will also result on becoming a going concern, if it was not one already).

Re: TLDR Stock Options

#179

Post by Double_a_92 »

dsr_ wrote: post #21

A QA engineer loads up a webpage and orders 0.1 percent of a company. Then 1%. Then back to 0.1%. Then clicks the down arrow -- ah, zero percent. Then clicks the down arrow again. Negative numbers ensue. True story, except I'm not usually a QA engineer.

I bet you it's still 100% coverage tested...
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