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With Snap’s IPO, Los Angeles Prepares to Embrace New Tech Millionaires

40 pointsby lnrdgmzabout 8 years ago

5 comments

askafriendabout 8 years ago
Realistically, with all the various ratchet terms in Snap&#x27;s financing, how many of the 2k employees will see very significant income from the IPO? By very significant, I mean &gt;$150-300k per year in wealth creation adjusted for # of years it took to vest.<p>I honestly suspect not too many. A majority of the money that people will earn will just offset the difference in salary between Snap and larger more established companies that give out liquid RSUs - like Google. Plus Snap significantly backweights their equity. So the people who can cash out on all of their equity are a small percentage of the 2k employees (since it&#x27;s still such a young company) and most employees probably haven&#x27;t vested the full 4 years.<p>Still, the IPO will have an impact on the local economy - but probably not as much as is being purported.<p>Maybe someone with more experience in large financial liquidity events like this can chime in?
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Apocryphonabout 8 years ago
<i>Not everyone is happy with the changes. Gentrification has pushed artists and working families out of Venice. Some restaurants have shut down because they can no longer pay soaring rents. In response, some politicians and residents in Venice have pushed for density restrictions, said Emil Schneeman, a real estate agent at Berkshire Hathaway Home Services.</i><p>Why has no community adequately planned for this sort of tech boom? Looks like the tragedy of the Bay Area housing crisis is going to replay itself, again and again. Seattle and Austin have already faced similar challenges.
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empath75about 8 years ago
Those who do not remember pets.com are doomed to repeat it.<p>This IPO is going to wipe out the unicorn bubble. The valuations for this company are utterly delusional.<p>It&#x27;s being pumped on all the investment forums by people who seem to honestly believe that the embarrassingly dorky Spectacles are going to be the next iPhone, even though investors seem to be the only people who have even heard of the thing.<p>This IPO is going to tank.
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rifficabout 8 years ago
Los Angeles already has an established and healthy &quot;tech scene&quot; although it&#x27;s not a tech industry per se. Film and aerospace industries require extraordinary tech resources.
adamnemecekabout 8 years ago
Out of the 1900 employees, how many are actually going to become millionaires at a company like Snapchat?
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