ABCDEFGHIJKLMNOPQRSTUVWXYZ
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Employment Terms
Assumed Dilution
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Today
1/1/2022Series ASeries BSeries CSeries D
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Exit Date
12/31/2025
% Dilution
25.0%20.0%10.0%
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Time to Exit4.0yrs
Diluted Equity (bps)
25bps19bps15bps14bps
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Annual Salary
 $ 100,000
Compensation Package to Exit
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% Bonus
10.0%
Exit Equity Value
 $ 250,000,000 $ 500,000,000 $ 750,000,000 $ 1,000,000,000 $ 1,250,000,000
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Annual Cash Compensation $ 110,000
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Accrued Salary
 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000
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Equity (basis points)
25bps
Accrued Bonus
 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
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Current 409A Valuation
 $ 1,000,000
Equity Value - Exercise Cost
 $ 335,000 $ 672,500 $ 1,010,000 $ 1,347,500 $ 1,685,000
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Cost to Exercise
 $ 2,500 Total Compensation $ 775,000 $ 1,112,500 $ 1,450,000 $ 1,787,500 $ 2,125,000
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Annualized Compensation $ 193,750 $ 278,125 $ 362,500 $ 446,875 $ 531,250
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If you have specific questions on this model that you would like answered, feel free to ask me on Twitter @dvasishtha
https://twitter.com/dvasishtha
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More info on what we're building at firsthand:
https://www.firsthandcares.com/
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Notes:
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1. The venture rounds in columns IJKL do not correspond to the exit equity values in their columns, they are simply a way to model out how much dilution your ownership will take
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2. Time to exit is set at four years solely to model vesting and assume that your equity grant fully vests, we recognize that not all companies exit in four years
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3. You cannot sell exercised options until there is a liquidity event (acquisition / merger / IPO) and even then it depends on the terms of the sale (some sales are stock transfers only)
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