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

No video

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

Рет қаралды 24,152

Chandler Bolt - The 7-Figure Principles Show

Күн бұрын

If you’re watching this video chances are you have just been offered equity in the company you are working for or planning to work for. My intention with this video is to prepare you for the questions to ask and how to value this offer.
Standards and Pitfalls to consider when weighing an equity offer:
1. Think of points as a percentage
2. Vesting schedule
3. Double the time and ¼ the value
Questions to ask yourself when thinking about accepting an equity offer:
1. Has this founder exited before
2. How long is the vesting schedule
3. Likelihood of an exit and your dilution
4. Product market fit?
5. Do I want to be here for 5 - 10 years?
6. Worst and best case scenario?
I hope this video helps to give you a little more insight into what equity is and what the outcome typically ends up being.
Links to my video on profit shares: • How To Create A Compan...
Check out the video & let me know what you think in the comments!
SUBSCRIBE to this channel here: bit.ly/chandlerYT
Subscribe to "The 7 Figure Principles Podcast" HERE: 7figureprinciples.com/
Check out what we're doing at Self Publishing School here: self-publishingschool.com
Learn about booking me to speak here: • Chandler Bolt - Speake...

Пікірлер: 44

@ChandlerBoltOfficial 3 жыл бұрын

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

@1anre 2 жыл бұрын

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 2 жыл бұрын

Glad it was helpful!

@sabacandari6745 Жыл бұрын

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

@scottallanindustries 3 жыл бұрын

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

@uclon4iv 2 жыл бұрын

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 2 жыл бұрын

Why is that?

@1ftsports678 2 жыл бұрын

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 2 жыл бұрын

Great to hear!

@donaldlisle3417 11 ай бұрын

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.

@kanishasims4082 2 жыл бұрын

So happy I found this video.

@coworkingtulum8087 2 ай бұрын

Great video!!

@entaditorium 2 жыл бұрын

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 2 жыл бұрын

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

@selfpublishingcom 3 жыл бұрын

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

@donaldevangelista3814 Жыл бұрын

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.

@rahulmandalcovers Жыл бұрын

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

@ecurbstudios 3 жыл бұрын

Another great video. Always so much to take in.

@EmpireWorldwideTrade 2 ай бұрын

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

@BericeGamerGuy 3 ай бұрын

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?

@fabianrojas3331 2 жыл бұрын

Super useful tatctics in here!!

@dreamerinc.8491 Ай бұрын

Great

@AdamWardach Жыл бұрын

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 Жыл бұрын

Dividends are not common with these types of arrangements

@ramyvance6309 3 жыл бұрын

Interesting points!

@gigacoreeso5245 Жыл бұрын

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?

@user-it9ll7xo3c Жыл бұрын

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

@Noname-pq8sn 2 жыл бұрын

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 2 жыл бұрын

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 2 жыл бұрын

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

@ICrashALot 2 жыл бұрын

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

@bonafidesmooth Жыл бұрын

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 Жыл бұрын

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

@AcesizOfficial 2 жыл бұрын

Interesting 👏🏽

@elka1600 2 жыл бұрын

Nice!

@aditibhattacharya6394 3 жыл бұрын

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?

@herbpalmerjr5562 2 жыл бұрын

if and when we sell lobster lab media

@Eufonio89 2 жыл бұрын

Top

@melissam6037 10 ай бұрын

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. 😅