A Specific Aspect of Startup Employee Pay, Explained – Meczyki.Net

hello and welcome back equityA podcast about the business of startups, where we unpack the numbers and nuances behind the headlines.

This is our Wednesday show, where we come across a single topic, think of one question and unpack the rest. This week, Natasha And Anita Asked:

When Is a Company Taking Internal Appraisals a Good Thing?

Generally, when we hear about valuations going down, it is a red flag that things are not going well in a company or in the market at large. We wrote about Stripe’s 28% internal valuation cut earlier this month and as we heard differing reactions to the news, we noticed that some people took the unexpected — that this downward revision was in fact. I was positive for the employees of the company.

That’s because the deduction comes from an internal 409A valuation valuation, which is completely different from the investor-led valuation we usually hear about in the news. That’s why we brought in two experts – Phil Haslett EquityGen and . of Sumukh Sridhar AngelList Key – What this valuation cut really means for startup employees and what else they need to know about their equity compensation as the market slides toward a recession. For more information, you can also check out our Meczyki.Net+ piece about the matter, “Stripe’s New and Lower Internal Assessment, Explained.”

let us know if you need more chain reaction x Equity Crossover Episodes by tweeting either of us or just sharing this episode with a friend. The numbers speak for themselves 🙂

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