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