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I look at companies like Uber raising billions of dollars (with liquidation preference) and losing billions of dollars in net operating loss each year, and I can only hope for the employee's sake that they have a 409a valuation on the common stock of exactly $1.

In reality they are probably handing out options with a strike price valuating the common shares at billions of dollars and those options are likely worse than worthless.



Indeed, as I mentioned, this doesn't help much in later rounds, but then again in later rounds salaries increase as well.

But for the early folks (B round or before), why not give them the maximum opportunity?




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