How To Value An Equity Offer As An Employee and not get screwed in the process

[@ChandlerBoltOfficial]

What are your decision making criteria around the discussion of equity?

[@sabacandari6745]

Would love more around the dilution piece and negotiating ideas around that.

[@1anre]

Thanks a bunch for this. Never thought an employee could ask for profit share when offered an equity offer - always just assumed that would make you look greedy & was only reserved for investors or people who have made it to partner at firms etc. Also the aspect of thinking deeply about post-product market fit is something I didn’t really thing about prior. And like you said, thinking of the worst case scenario; should things not pan out you paying attention to the industry you’re in, either it being Tech or SaaS & knowing that at least you’d be able to take away some transferable skills from this current startup endeavor into your next Tech-related career journey, would definitely be a good plus. Keep churning out these unfiltered & truthful videos on what employees should keep their eyes peeled out about, when dealing with offers from Startups in general.

[@ChandlerBoltOfficial]

Glad it was helpful!

[@donaldlisle3417]

Thank you for Clearing up the vapor that is being sold! This is helpful for someone who doesn't want to go to the woodshed.

[@scottallanindustries]

Lots of knowledge bombs dropped in this video, thanks for sharing this information!

[@donaldevangelista3814]

this has been super helpful! thank you for your deep insights here! very true points on the notion of being attached to ownership and potential $ on that. but not a whole lot weight being put on the probability of liquidating happening.

[@flurinjenal374]

Great video! Another question is why is product market fit so important in the discussion of the stock options? Yes, there is more risk to the company when joining before product market fit as opposed to after, but the later I join, the higher their valuation already is. Meaning to join before product market fit can also be a huge advantage to your gains.

[@1ftsports678]

Wow, great advice! Being in tech sales my entire career, all these points are super important. Especially the one about founder history and whether he has exited before.

[@ChandlerBoltOfficial]

Great to hear!

[@Flite999]

I love the profit sharing take here. Anyone else here successfully negotiate that?

[@flurinjenal374]

Good video! Question at 7:20, why does it matter if you get diluted? If you get a fixed amount of shares for a strike price and the startup grows in value until the acquisition you make a profit on the value gain between strike price and exit price. Do I really care about the change in % on my shares?

[@kanishasims4082]

So happy I found this video.

[@selfpublishingTV]

Thankful for the fact that we have profit share at SPS!!

[@rahulmandalcovers]

This was damn helpful, Chandler. Thank you so much.

[@ecurbstudios]

Another great video. Always so much to take in.

[@uclon4iv]

I would say unless you're taking a pay cut to get the equity, the most important part of it are the tax implications.

[@ChandlerBoltOfficial]

Why is that?

[@entaditorium]

Nice video. I should have considered the worst case scenario before taking the offer, as sometime you may get close to the worst case.

[@ChandlerBoltOfficial]

Definitely. Often recruiters pitch people based on best case scenario with their equity options

[@EmpireWorldwideTrade]

what happens to my stock options when there is dilution after each round? am i worse off?

[@fabianrojas3331]

Super useful tatctics in here!!

[@sissy-h8d]

im on the short bus ride,, can you explain how this relates to me. Equity?

[@BericeGamerGuy]

If i am vested for another couple years but i have been granted say 150 options can i purchase these then quit and keep those options. Or do i lose them if i leave before being vested?

[@gigacoreeso5245]

Hi Chandler, this video was immensely helpful. Sorry if you have answered this question before, but we have a co-founder, who was inadvertently left off the cap table when filling. We want to get them their equity as soon as possible. Do you know what’s the shortest vesting window we can make for their equity grant?

[@Noname-pq8sn]

Damn good video!!! Thank you! What if you get an equity offer for a company that’s already public. Why would they offer that? It also has a great salary and benefits. Is it worth it to negotiate for more?

[@ChandlerBoltOfficial]

That can be good if the future valuation of the company is likely to be positive. Never hurts to negotiate for more up front

[@Noname-pq8sn]

@@ChandlerBoltOfficial is there a “most common” equity $ number that is offered?

[@ICrashALot]

@@Noname-pq8sn "zero" is probably the most common equity offer

[@coworkingtulum8087]

Great video!!

[@ramyvance6309]

Interesting points!

[@AcesizOfficial]

Interesting 👏🏽

[@bonafidesmooth]

What if you were automatically given shares in a company after already working there for a period of time , say more than 5 years

[@ChandlerBoltOfficial]

That’s great! I’d value them exactly the same

[@AdamWardach]

When you get shares you have cut from profits too. You have dividends when company is giving profits to shareholders. Basically stock company have no other option than dividends or buyback to give profits to owners when they ara above BEP. To get cut from revenue you have to work in sales departament and it is bonus.

[@ChandlerBoltOfficial]

Dividends are not common with these types of arrangements

[@aditibhattacharya6394]

Hi your are a great search result on youtube.... will go through all your videos. Is there a way i can get on a zoom call with you?

[@dreamerinc.8491]

Great

[@herbpalmerjr5562]

if and when we sell lobster lab media

[@elka1600]

Nice!

[@tabansie]

What do you mean by dilution?

[@Eufonio89]

Top

[@melissam6037]

I took stock shares like a dummy lol. My boss talked a great game about how they were sure to go IPO. I asked recently about that, and my boss evasively started talking all about how the company was growing, which is nice for them as a private owner 🙄 To be fair, at the time I really needed a job & took a lower salary as better than being unemployed, but I’m looking at getting out of there ASAP. 😅

[@herbpalmerjr5562]

lobster lab media, 250 video's on branding and marketing on a budget.

[@saulaero1]

Huh

[@suleimanpeshawari1032]

Profit share in Silicon Valley lol. Lol lol. Typically KZbinr

[@ChandlerBoltOfficial]

Never said that’s a thing. Watch the video. Typical KZbin commenter 😜