Equity Value Calculator
1
Equity Value Calculator *The company may exit for less than was raised. **Excludes any tax liability. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. You should obtain relevant and specific professional advice before making any investment or other decision. Silicon Valley Bank is not responsible for any cost, claim or loss associated with your use of this material. © 2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Post-money valuation: The company’s valuation after the last round of funding. Provided by the company $ Preferred price: The most recent price per share for preferred stock. Provided by the company $ Number of fully diluted shares: This is equal to the post-money valuation divided by the preferred price. If this is provided by the company, you don’t need the preferred price. Estimated exit value: Look at similar companies who were recently acquired or went public. This number may also be estimated by the press online, but usually it is not provided by the company.* $ Number of options offered: This should be in your offer letter. Strike price: The per share cost to exercise your option. It’ll be in your offer letter or ask for the FMV at the last 409A valuation. $ Cost to exercise: Multiply the number of options by the strike price. $ Your ownership percentage: This is the number of options offered divided by the number of fully diluted shares. Estimated option payout: Multiply your ownership percentage by your estimated exit value. $ Net estimated option payout: Subtract the total cost to exercise from the estimated option payout.** $ Use this calculator to determine the approximate value of an equity offer that you receive from a prospective employer.
Transcript of Equity Value Calculator
Equity Value Calculator
*The company may exit for less than was raised.**Excludes any tax liability.
This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. You should obtain relevant and specific professional advice before making any investment or other decision. Silicon Valley Bank is not responsible for any cost, claim or loss associated with your use of this material.
© 2021 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
Post-money valuation:The company’s valuation after the last round of funding.Provided by the company
$
Preferred price:The most recent price per share for preferred stock.Provided by the company
$
Number of fully diluted shares:This is equal to the post-money valuation divided by the preferred price. If this is provided by the company, you don’t need the preferred price.
Estimated exit value:Look at similar companies who were recently acquired or went public. This number may also be estimated by the press online, but usually it is not provided by the company.*
$
Number of options offered:This should be in your offer letter.
Strike price:The per share cost to exercise your option. It’ll be in your offer letter or ask for the FMV at the last 409A valuation.
$
Cost to exercise:Multiply the number of options by the strike price.
$
Your ownership percentage:This is the number of options offered divided by the number of fully diluted shares.
Estimated option payout:Multiply your ownership percentage by your estimated exit value.
$
Net estimated option payout:Subtract the total cost to exercise from the estimated option payout.**
$
Use this calculator to determine the approximate value of an equity offer that you receive from a prospective employer.
