11–20 of 31 posts
Earlier quoted context omitted.
Maybe that B is an M?
Nope, it is a B
At 70M the calculus is much different.
The $70 billion valuation is suspect. Far too high for nearly all early stage companies. SpaceX raised last year (?) around $100 billion for reference.
Without knowing the total number of shares, it's impossible to know what your friend's 10k shares would be worth. e.g. if there are 100M shares total, then his shares would be worth 10k/100M = 0.0001 of the valuation of $70B, i.e. $7M. In order to own these shares, he would have to exercise the options, meaning he would need to pay the strike price of $0.01 per share, i.e. 10k * $0.01 = $100. Also important to note i…
The total number of shares will be limited to 607,500,000
Price per share also has tax implications.
Strike price means they will have to pay 0.01 per share or $100 total for the stock, which is largely irrelevant.
For example, If only 20k shares have been issued, they will have to pay income taxes on 35B over 3 years.
Is 70B the valuation they are being offered stock at or what the 17m investors payed?
https://carta.com/blog/equity-101-exercising-and-taxes/
https://secfi.com/learn/exercise-stock-options-tax-implicati...
Earlier quoted context omitted.
The total number of shares will be limited to 607,500,000
If you believe that valuation then it's ~$1.5M over 3 years. I would personally ask for explanation of the $70B valuation because if it goes for a piddling $500M your friend gets ~$11K over 3 years
They would get 0, you aren't accounting for seniority.
Earlier quoted context omitted.
Maybe that B is an M?
Nope, it is a B
The $70 billion valuation is suspect. Far too high for nearly all early stage companies. SpaceX raised last year (?) around $100 billion for reference.
I think you misspoke? No company in history has ever raise $100b in a year, but that’s about what SpaceX is valued at now.
The $70 billion valuation is suspect. Far too high for nearly all early stage companies. SpaceX raised last year (?) around $100 billion for reference.
I think you misspoke? No company in history has ever raise $100b in a year, but that’s about what SpaceX is valued at now.