They raised $200M and sold for $1B.
Options from the last raise would be under water, but they operated for years before that raise. There are likely a lot of employees doing reasonably well.
Options from the last raise would be under water, but they operated for years before that raise. There are likely a lot of employees doing reasonably well.
So it's possible for employees to have joined after the new 409a when it was valued at 1.5bln and early exercised against that value.
Depends on the exercise price. Exercise price is lower than the preferred price that the investor paid. Due to the fact that investors get preferred shares.
409a can often be 20% of the preferred valuation.
In this case, since series C was 1.5bln and sold for $975m, then the preferred shares were bought during C would be made whole first (assuming the prior rounds were made whole first and there's enough left over for series C preferred) before those who exercised right after the valuation for common shares.
Edit: I forgot that preferred shares also come with liquidation preferences too, meaning that in a loss situation, later employees are highly unlikely to get something