SqueakyPotato
SqueakyPotato

Need ESOPs valuation

I was allotted 40 ESOPs at 8000/- value of each share. Now new funding is raised at 100 cr valuation. What will be the value of my ESOPs post funding.

9mo ago
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GoofyDonut
GoofyDonut

This problem is insolvable unless you know either the valuation at which you were offered the ESOPs, or the new value of each share.

SqueakyPotato
SqueakyPotato

At 8 cr valuation these were offered

GoofyDonut
GoofyDonut

Do the math Initial num of shares = 8Cr/8k = 10,000 Your take = 40/10k = 0.4% of 8Cr = 3.2L

Max value (if no new shares were issued, this happens when founders or earlier investors sell their shares) = 100 / 8 * 40 shares * 8000/share = 40L

Usually new shares are issued, diluting the stake of everyone involved. Find out how much stake new investors got in the new round for the money they put in.

E.g. They put in 10Cr to get 10% stake@100Cr valuation If no of shares added = 1,000 @ 1L/share Your new take would be 40/11k = 0.36% of 100Cr = 36L

Ideally it would be in 25-30L range. Best ask the founders what the new "share price" post funding is.

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