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Ask HN: I’m interviewing at a pre-IPO company, how do I know if I’m too late?

5 pointsby archeantusover 4 years ago
One of the main draws to startups is getting in with some equity that could be worth a lot once the company goes public.<p>I’m interviewing at a well known, probably-soon-to-IPO company that has already raised a few rounds (they might be on C or D). How can I tell if the comp deal I’m getting has the potential to be worth a lot? Or what should I look for that signals they’re not really willing to go to bat for this role?

3 comments

Etheryteover 4 years ago
Regardless of what stage you&#x27;re joining at, assume your equity is worth nothing. Doubly more so if you&#x27;re not the founder and are joining the party late. You&#x27;re last in a very long line of hungry mouths, waiting for an event that can just as well never happen. Ignore the equity, consider whether this is a position that&#x27;s interesting for you, and whether the cash matches your needs and motivations.
kojeovoover 4 years ago
They should provide you with the valuation and stock price from the last round and you should know how many shares you are getting. Based on that you would know the value of your grant in today&#x27;s hypothetical money.
ystadover 4 years ago
Depends where you’re coming from. You are potentially late if the company is beyond Series A. If the company is big and ready to IPO you will get a better idea of the valuation for your RSU grant (I recommend against options at this stage as it can be a monetary burden for you at this stage, and you can get stuck with them if the IPO doesn’t perform per expectations).<p>Do your research on potential market cap with comparables. You should compare your Total comp. with a public company. Look at levels.fyi as an example.
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