Share Price of ESOP

Question

Hi HN,I have the situation that I am in negotiations with investors to sell part of my ESOP.We raised a successful series A in the past couple of months and the investors claim that discounts of 30-40% of ESOP are deemed "normal", because they have no LiqPref and voting rights.To me that seems to be too much, so I'm asking whether you have any experience with such a sale and what should be an acceptable discount.Thank you!

alexanderjarvis · Accepted Answer

You have not provided enough info.Selling out at s-a normally implies leverage and it sounds like you don't have any which is an oxymoron.You could have sold pari passu if the round was oversubd etc

KaisoEnt · Answer

argue for a lower discount (20-30%) by emphasizing the company&rsquo;s growth and recent valuation from the Series A round, which shows that your shares still have strong potential value even without the extra protections

Share Price of ESOP

You have not provided enough info.
Selling out at s-a normally implies leverage and it sounds like you don't have any which is an oxymoron.
You could have sold pari passu if the round was oversubd etc

argue for a lower discount (20-30%) by emphasizing the company’s growth and recent valuation from the Series A round, which shows that your shares still have strong potential value even without the extra protections