| A | B | C | D | E | F | |
|---|---|---|---|---|---|---|
1 | Overview: | This spreadsheet is intended to model how salary and option grants come together to form a cohesive compensation package. Options can be confusing. This spreadsheet hopefully helps you build intuition. You can inspect the formulas in the cells to have a better understanding. | ||||
2 | Instructions: | 1. Make a copy of this sheet so you can edit it. 2. Change the values in the cells marked in yellow. You can also edit the cells in purple. The rest of the sheet will update dynamically. | ||||
3 | Note: | This is a simplified model. In real life, exits have a lot of variability. Your taxes are likely going to be different than the simple formula this document uses. This document should not be considered financial advice. Check out this link to go deeper: https://www.holloway.com/g/equity-compensation | ||||
4 | ||||||
5 | Compensation Over Time | |||||
6 | Years | Options Granted | Strike Price | Total Cash | Income Tax | Banked Cash |
7 | 2020 | 50,000 | $0.0002 | $100,000 | $30,281 | $69,719 |
8 | 2021 | 10,000 | $0.200 | $120,000 | $37,741 | $82,259 |
9 | 2022 | 2,000 | $1.50 | $140,000 | $45,201 | $94,799 |
10 | 2023 | |||||
11 | 2024 | |||||
12 | 2025 | |||||
13 | Totals | 62,000 | $5,010 | $360,000 | $113,223 | $246,777 |
14 | ||||||
15 | ||||||
16 | Ownership After Each Fundraise | |||||
17 | Dillution | Number of Shares | Ownership | |||
18 | Seed | 25% | 100,000,000 | 0.06200% | ||
19 | Series A | 15% | 125,000,000 | 0.04960% | ||
20 | Series B | 12.5% | 143,750,000 | 0.04313% | ||
21 | Series C | 10% | 161,718,750 | 0.03834% | ||
22 | Series D | 5% | 177,890,625 | 0.03485% | ||
23 | IPO | 5% | 186,785,156 | 0.03319% | ||
24 | ||||||
25 | ||||||
26 | Exit Scenarios | |||||
27 | Exit Valuation | Exit After Round | Equity % | Equity Value | ||
28 | Future valuation of equity | $200,000,000 | Series B | 0.043% | $86,261 | |
29 | $500,000,000 | Series B | 0.043% | $215,652 | ||
30 | $750,000,000 | Series C | 0.038% | $287,536 | ||
31 | $1,000,000,000 | Series D | 0.035% | $348,529 | ||
32 | $3,500,000,000 | IPO | 0.033% | $1,161,763 | ||
33 | $5,000,000,000 | IPO | 0.033% | $1,659,661 | ||
34 | $10,000,000,000 | IPO | 0.033% | $3,319,322 | ||
35 | ||||||
36 | Pick exit valuation scenario | $1,000,000,000 | 0.035% | $348,529 | ||
37 | Option buy | $5,010 | ||||
38 | Net Gain | $343,519 | ||||
39 | Capital Gains Tax | 35% | $119,819 | |||
40 | Equity Gains | $223,699 | ||||
41 | Cumulative Cash + Equity Comp | $470,476 | ||||