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by unicorn_eng
1471 days ago
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I'm currently at a unicorn SaaS startup. I have 11,500 ISOs, about 7000 of which I've vested and exercised (I've got about 1.5 years left till I'm fully vested). My strike price is $1.50, which to me is a bargain, especially since there was a tender offer last year of around $14. There are ~70M outstanding shares. Other stats: $60M ARR, 120% NRR last year, almost 100% YoY growth during 2021, raised $110M at 40x revenue last year, high NPS, company still has over $110M in the bank, TAM is in the tens of billions, current market penetration is <5%, planning to go public at $200M ARR. So the potential upside is huge. Work environment is great, I have a great boss and a decently challenging/significant role. I'm a senior engineer making around $170k/year. I'm curious what you all think - is it worth the risk of staying until I vest? The alternative would be to join a public software company and increase my salary significantly (which would help so much right now - we need a larger house for our kids). |
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Vesting 2,875 shares per year
2,875 @ $(14-1.50)= $36k/yr
Assuming IPO @ $200MM ARR, public cloud SaaS benchmark rev multiple was roughly 20x last year before the crash.
That’s a $4B valuation, ignoring dilution from here to there:
$4B/70M shares = $57/share
2,875 @ $(57-1.5) = $160k/yr
That’s assuming the market recovers to a similar level, ignoring further dilution, assuming the company continues executing and doesn’t hit unforeseen difficulties, etc.
Can you make that much with less risk by changing jobs?
- Another consideration might be diversification if your vested options represent a large % of your portfolio.
- Another consideration, “work environment is great” isn’t something that everybody can say and this might be worth more than the raise.