hard20 pts · first answer countsoffersequity

Valuing startup options

A startup's last funding round priced preferred shares at ₹500. A candidate values their options as (₹500 − strike price) × number of options. Why is this likely too high?

A.The strike price of employee options is always higher than ₹500B.Employee options can never be converted into any kind of sharesC.A funding round price is always lower than the true share valueD.Common shares are worth less than preferred shares, which have extra rights

Discussion 0

Join free to post in the discussion.

Valuing startup options

Discussion 0

Related questions