| | | | | I got options. Bad options. The tweet below is a great warning for employees joining unicorn companies. If you think your options will make you wealthy... ...the odds are not great. Why? A handful of reasons: -
Execution risk — When you raise at a high valuation really early on, you need to grow into that valuation, i.e, you have to deliver. If you don’t, uh oh. -
Multiple compression — If you have $10M in revenue and raise at 100x, your valuation is $1B. If multiples in your space compress to 20x, you can be a $50M company and still be worth $1B. The above is oversimplified, but you hopefully get the idea. Be careful out there. | | | | | |