Public Template: Offer deck stock option value template
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To make a copy for your own use, copy all of the cells and then paste them into a new Google sheet. You can then edit or download to Excel.
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Company Name
Company X
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1Company X revenue as of last month$5,000,000
Our most recent monthly revenue
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2Est revenue multiple5.0x
Our estimate of a revenue multiple given our size, growth and market
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3 Estimated market valuation$300,000,000
= 1 x 2 x 12 mos
Our best guess of the true valuation of Company X; this is an estimate not a guarantee - the real value could be much higher or lower
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5Company X fully diluted shares20,000,000
The total number of fully diluted shares of Company X as of today
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6 Estimated value per share$15.00= 3 / 5
Our total estimated market value divided by our total number of shares = estimated market value per share
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8Most recent strike price$2.00
The exercise cost of an option based on our 409a valuation; the amt you will have to pay to exercise option and acquire a share
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9 Implied 'notional value' of an option$13.00= 6 - 8
The difference between the exercise price and the est. market value; our best guess as to the true value of each option
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11Your annual cash compensation$80,000
Your annual salary
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12Your level/roleEngineer
How we are classifying your role for equity grant purposes
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13The equity multiplier for your level/role0.26
This is a multiplier based on Union Square Ventures' research and equity grant framework of market comparables for your role
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Our target value of your grant for this role
$20,800= 12 x 13
Our target value of your equity grant as of today -- we want to grant you $20,800 worth of options
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Notional value of an option (from above)
$13.00= 9
The estimated value per grant per the notional value on line 9 above
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Options granted (rounded to nearest 50)
1,600= 14 / 16
The number of options we need to grant you to get you to $20,800 worth of options assuming a $13.00 value per option
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18 Options granted as % of total0.008%= 17 / 5
Your overall percentage of the fully diluted shares of the company
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What could your grant be worth in 4 years?
Revenue multiple in year 4...
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This is not a guarantee of value, and there is no specific timeline for your shares to become liquid (meaning you can cash out). We just want to give you an better sense for what your options could be worth if we execute well in the coming years.1.0x3.0x5.0x7.0x9.0x
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Annual 4 yr growth rate25%$9,000$32,000$55,000$79,000$102,000
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50%$21,000$70,000$118,000$167,000$216,000
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75%$42,000$132,000$222,000$312,000$402,000
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100%$74,000$227,000$381,000$534,000$688,000
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For example, if we grow at 50% per year for the next 4 years, and are valued at 5x revenue, your current option grant would be worth $118,000
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Equity multipliers by role
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Exec Team/C-level2.45
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VP1.86
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Director0.54
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Sr. Engineer0.40
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Engineer0.26
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Key Contributor/Specialist0.43
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Individual Contributor0.23
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