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Figured I'd share this since its comp info you don't normally see. A lot of people made a lot of money today. I got 150,000 options for Reddit very early after
by exreddit 2y ago
Figured I'd share this since its comp info you don't normally see. A lot of people made a lot of money today. I got 150,000 options for Reddit very early after it was spun out. With today's price, that's $7.5M, but I didn't get all 4 years of vesting, the pay was below-average, and my money was tied up. During the same decade, the faangs were up 12x on average, but the pay was better, and my money would have been liquid. Reddit might not hold up for 6 months, either.
- fragmede 2y agoWhy didn't you take a deal with a secondary market buyer? Quid or SecFi or whatever
- krallja 2y agoRegardless of what price they quote in their emails, I’ve heard that Quid will only loan you a quarter of the FMV of your shares, at 15% APR (deferred) — plus 5.5% of your shares outright, which increases annually. It sounds like a horrible deal.
- fragmede 2y ago100% of $0 is $0. Even 25% of $7.4m is $1.8m
- krallja 2y agoThese shares weren’t ever worth $7.4m at FMV.
- mattmanser 2y agoDid you miss the key words of LOAN and 15% APR?
- JumpCrisscross 2y agoYou should be able to get a non-recourse loan, i.e. where you never owe more than the stock is worth. That said, Reddit was one of the more secondary-unfriendly firms, if memory serves correctly, if you didn’t have Board or senior management connections.
- fragmede 2y agoit's a non-recourse loan though, so if Reddit didn't IPO and you can't pay, you don't owe money you don't have.
- toomuchtodo 2y agoThanks for sharing, always fascinating to see different lottery tickets.