Most important thing everyone needs to understand about equity comp right now: most 2021 rounds overvalued all startup by significant multiples. While equities have corrected dramatically, the revaluation for startups will only occur when the next round of funding comes around.
So, in all likelihood, that unicorn $3B valuation being paraded is sub $1B right now, and if rates continue to March higher, your equity value will be cut even more dramatically.
If your heart is set on a startup that you believe will survive the next decade, take money over equity now then when the company is hurting and needs to save cash, bulk up on equity at cheap levels.
So, in all likelihood, that unicorn $3B valuation being paraded is sub $1B right now, and if rates continue to March higher, your equity value will be cut even more dramatically.
If your heart is set on a startup that you believe will survive the next decade, take money over equity now then when the company is hurting and needs to save cash, bulk up on equity at cheap levels.