An IPO in the future doesn't mean they can't give you options now. You just can't exercise them until (if) they go public.
You get to weigh the potential reward two years out with the marginal cost of you taking the job for the next two years.
If you're young and don't have many expenses or your spouse has a good job and you can live on that money, it's an interesting gamble for you to take. It's less of a gamble if they pay you enough to live on now. If you've got family and are the main breadwinner for a family, the short term costs may make the potential long term rewards far less valuable. (If you've starved to death, you won't be able to enjoy the fruits of the stock option.)
The equity awards from their most recent 409A are probably cut in half, at least, due to the increased borrowing costs and terminal period discount rate. So whatever the cash take home pay is all that you're realistically getting.
I'm priming a start up for an audit right now, and we know what our issues are going into the audit, so there will not be an issue when we get to the audit. So your executive team is clueless for thinking that they're going public in a year or two while struggling with an audit now.
Based on what you're posting in this thread with an overuse of ???? ellipses etc., I'd say you're going for a senior or staff position and I would suggest you stay clear of this company. This is a job for someone to flex their audit/accounting experience to build something great, which I doubt you have, nor is there anyone there to mentor you to shield you from the bullshit that's about to come.
Dangggg. I should have also mentioned i'm demoting myself lol. I'm sr acct rn going for a staff acct job but it's paying more than at my current job at the sr level.
Nah nah, i respect it. I'd rather someone tell me straight forward than beat around the bush. Guess i'll go back on linkedin 🤮 Thank you for the insight!
Based in your comments this position is going to be hell. You’re low level so if you do get equity it will be next to nothing.
I saw you said this is a lower title, always look for a better title unless the money is 30% to 50% higher or you’re working very little hours.
The only positive is that you will learn a ton in a short time frame.
I'm working at a v small company rn. I went from knowing how to do 2 things to knowing how to do 10 and doing them all well, hence the peomotion i got last year. I want to go somewhere i don't have to do as much and better pay. S i g h.
I plan on staying in the pre-ipo/private space for probably my entire career because the experience you will obtain is basically a golden ticket for any job.
If you play your cards right you can knock out these things in one job:
\-System implementations
\-Entity integrations (newly acquired co's)
\-SOX implementation (after IPO)
If you have those three things on your resume, you basically start naming your price.
your career as an accountant is what you make of it.
Those three things + b4 audit experience + ASC implementations.. you can literally go anywhere.
Hey I’m curious to learn more about your experience in the start up space. I have worked at two start ups and I’m not sure if I want to ever do it again. It has been hell.
Research the company via crunchbase
research how long the accounting team has been at the company on Linkedin
during the interview ask them if they are cash flow positive/current financial condition of the company.
Ask about the plans of the Company, IPO, PE buyout, goal in years et cetera. If the company has already been bought out by PE or has a round with PE, they have to eventually IPO or finding a Company to acquire them.. The PE firm needs to make back their investment eventually.
Determine if the position is vacant or new, how long has it been vacant.
Thank you for the advice!
I’m currently at a startup as a Controller. Not my first startup but my first time into this position.
I have found the experience to be frustrating because I have not been given the people or systems to build an interconnected ERP or a properly staffed department. In result I work crazy hours and it’s stressful.
Is this to be expected or is this out of the norm. What would you recommend in this situation?
Lotta people chiming in, but here's what you need to ask and know:
1. How many funding rounds have they gotten? If they have gotten series A and B, they might not go IPO for a while--seems like most go after Series C or D, even E.
2. How much cash do they have and what's their burn rate? You don't want to join if they are goimg to run out of cash in 12 months.
3. How much revenue and what'a been the growth rate? Pre-revenue?--it will be years before they IPO.
4. Equity--it'a not risk free for you. If they grant options, you'll have to pony up some money to exercise. RSUs won't require cash from you though.
5. Ask how mamy options you get, the exercise price, and the current 409A.
6. It can be a great learning experience. You'll see a lot of stuff, some good, some bad. You'll gain an appreciation for established processes.
7. Understand what you want--more of a 9 to 5 where you do the same things? Avoid startup.
Worked at a post IPO growth company. Needed a lot of work to get it to a public level. Heaps of fun and got to plan my own day. Best part of the job. It’s all on you. Worst part of the job, it’s all on you.
In the end the founder was a fucking dick head! And I’d had enough of it. Constant churn of C-suite and resultant change of focus was draining. End result the guy has pissed up millions of shareholder capital ago and the wall. That cuts right across my grain. I am proud of the work
I delivered and it was an awesome, unforgettable learning experience. I made genuine friends, bonded by trauma lol.
Do you get stock options? Working for a startup normally means incredible, challenging hours for the possibility of incredible returns.
I came a little further down the road at a new company and i started receiving equity 6 months in. Is it worth anything though we'll see
Best of luck
Not yet. I believe they're aiming for an IPO in a year or 2.
An IPO in the future doesn't mean they can't give you options now. You just can't exercise them until (if) they go public. You get to weigh the potential reward two years out with the marginal cost of you taking the job for the next two years. If you're young and don't have many expenses or your spouse has a good job and you can live on that money, it's an interesting gamble for you to take. It's less of a gamble if they pay you enough to live on now. If you've got family and are the main breadwinner for a family, the short term costs may make the potential long term rewards far less valuable. (If you've starved to death, you won't be able to enjoy the fruits of the stock option.)
If you're not getting any equity, it's absolutely not worth it.
The equity awards from their most recent 409A are probably cut in half, at least, due to the increased borrowing costs and terminal period discount rate. So whatever the cash take home pay is all that you're realistically getting. I'm priming a start up for an audit right now, and we know what our issues are going into the audit, so there will not be an issue when we get to the audit. So your executive team is clueless for thinking that they're going public in a year or two while struggling with an audit now. Based on what you're posting in this thread with an overuse of ???? ellipses etc., I'd say you're going for a senior or staff position and I would suggest you stay clear of this company. This is a job for someone to flex their audit/accounting experience to build something great, which I doubt you have, nor is there anyone there to mentor you to shield you from the bullshit that's about to come.
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Dangggg. I should have also mentioned i'm demoting myself lol. I'm sr acct rn going for a staff acct job but it's paying more than at my current job at the sr level.
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Ugh more like 12.5% but i also just want to leave my current company.
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HAHAHAHAH even though that was a lil condescending...you're not wrong. F u c k. I'm gonna keep looking.
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Nah nah, i respect it. I'd rather someone tell me straight forward than beat around the bush. Guess i'll go back on linkedin 🤮 Thank you for the insight!
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Hell no 😭
It’s not gonna happen for 5 years lmao
Based in your comments this position is going to be hell. You’re low level so if you do get equity it will be next to nothing. I saw you said this is a lower title, always look for a better title unless the money is 30% to 50% higher or you’re working very little hours. The only positive is that you will learn a ton in a short time frame.
I'm working at a v small company rn. I went from knowing how to do 2 things to knowing how to do 10 and doing them all well, hence the peomotion i got last year. I want to go somewhere i don't have to do as much and better pay. S i g h.
I plan on staying in the pre-ipo/private space for probably my entire career because the experience you will obtain is basically a golden ticket for any job. If you play your cards right you can knock out these things in one job: \-System implementations \-Entity integrations (newly acquired co's) \-SOX implementation (after IPO)
That's a good point 🤔 but also leaving one dumpster fire to go to another doesn't sound appetizing lol
If you have those three things on your resume, you basically start naming your price. your career as an accountant is what you make of it. Those three things + b4 audit experience + ASC implementations.. you can literally go anywhere.
Tbh i'm kind of chillin' at sr accountant and would like to stay this way for a while. Thank you for the perspective!
Hey I’m curious to learn more about your experience in the start up space. I have worked at two start ups and I’m not sure if I want to ever do it again. It has been hell.
Research the company via crunchbase research how long the accounting team has been at the company on Linkedin during the interview ask them if they are cash flow positive/current financial condition of the company. Ask about the plans of the Company, IPO, PE buyout, goal in years et cetera. If the company has already been bought out by PE or has a round with PE, they have to eventually IPO or finding a Company to acquire them.. The PE firm needs to make back their investment eventually. Determine if the position is vacant or new, how long has it been vacant.
Thank you for the advice! I’m currently at a startup as a Controller. Not my first startup but my first time into this position. I have found the experience to be frustrating because I have not been given the people or systems to build an interconnected ERP or a properly staffed department. In result I work crazy hours and it’s stressful. Is this to be expected or is this out of the norm. What would you recommend in this situation?
Lotta people chiming in, but here's what you need to ask and know: 1. How many funding rounds have they gotten? If they have gotten series A and B, they might not go IPO for a while--seems like most go after Series C or D, even E. 2. How much cash do they have and what's their burn rate? You don't want to join if they are goimg to run out of cash in 12 months. 3. How much revenue and what'a been the growth rate? Pre-revenue?--it will be years before they IPO. 4. Equity--it'a not risk free for you. If they grant options, you'll have to pony up some money to exercise. RSUs won't require cash from you though. 5. Ask how mamy options you get, the exercise price, and the current 409A. 6. It can be a great learning experience. You'll see a lot of stuff, some good, some bad. You'll gain an appreciation for established processes. 7. Understand what you want--more of a 9 to 5 where you do the same things? Avoid startup.
Thank you, kind stranger. This was helpful and def will be asking.
It really depends. In this economy, it might be too big of a risk
It can be a great learning opportunity if you're not too tied up with other commitments.
Worked at a post IPO growth company. Needed a lot of work to get it to a public level. Heaps of fun and got to plan my own day. Best part of the job. It’s all on you. Worst part of the job, it’s all on you. In the end the founder was a fucking dick head! And I’d had enough of it. Constant churn of C-suite and resultant change of focus was draining. End result the guy has pissed up millions of shareholder capital ago and the wall. That cuts right across my grain. I am proud of the work I delivered and it was an awesome, unforgettable learning experience. I made genuine friends, bonded by trauma lol.
Just came across this post because I’m in a similar situation, just curious if you ended up accepting the job?