Ask HN: Formula to calculate how much is your equity worth during an exit?
What is a generic formula to calculate how much is your stock option worth when the company is acquired?
How much is the equity worth on the following scenarios?
Scenario #1 (everyone is fully vested)
- Your equity is 1% with $0.10/share strike price (common stock)
- Investors own 20% with $20M invested (preferred stock)
- Founders own 70% (founder stock)
- Employee own 9% (common stock)
- The company is acquired for $30M.
- Everything is same as above except the company is acuired for $50M
- Everything is same as above except the company is acuired for $100M