{"id":466,"date":"2017-02-08T12:47:48","date_gmt":"2017-02-08T12:47:48","guid":{"rendered":"http:\/\/reformingretail.com\/?p=466"},"modified":"2019-01-23T07:46:42","modified_gmt":"2019-01-23T13:46:42","slug":"dear-revel-employees-your-shares-are-probably-underwater-will-be-for-a-while","status":"publish","type":"post","link":"https:\/\/reformingretail.com\/index.php\/2017\/02\/08\/dear-revel-employees-your-shares-are-probably-underwater-will-be-for-a-while\/","title":{"rendered":"Dear Revel Employees: Your Shares Are (Probably) Underwater &#038; Will Be for A While"},"content":{"rendered":"<p>When <a href=\"http:\/\/www.cnbc.com\/2015\/11\/19\/square-ipo-points-the-way-for-lower-valuations-of-unicorns.html\">Square IPO'd in late 2015 <\/a>it was at <span style=\"text-decoration: underline;\">half<\/span> the value of its last private financing. So while private investors thought Square would be worth $6B, the public markets\u00a0beat it down to $2.9B. Square is still trading at less than a $6B market cap today.<\/p><p>The real losers are Square employees who joined after <a href=\"https:\/\/techcrunch.com\/2014\/10\/05\/square-closes-150-round-at-6-billion-valuation\/\">Square's Series E in October of 2014<\/a> because it looks like they're never going to be <a href=\"http:\/\/www.investopedia.com\/terms\/i\/inthemoney.asp\">in the money<\/a>. And even employees who were issued shares before the Series E were out of the money for two plus years. At least founders can tap <a href=\"http:\/\/www.investopedia.com\/ask\/answers\/012615\/whats-difference-between-primary-and-secondary-capital-markets.asp\">secondary capital<\/a> - that is, money from investors that buys shares from <em>existing<\/em> shareholders and not the company itself, providing a liquidity event for early investors and founders.<\/p><div class=\"leaky_paywall_message_wrap\"><div id=\"leaky_paywall_message\"><a href=\"https:\/\/reformingretail.com\/index.php\/subscribe\/\">Subscribe<\/a> or <a href=\"https:\/\/reformingretail.com\/index.php\/log-in\/\">log in<\/a> to read the rest of this content.<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>When Square IPO&#8217;d in late 2015 it was at half the value of its last private financing. So while private investors thought Square would be worth $6B, the public markets\u00a0beat it down to $2.9B. Square is still trading at less than a $6B market cap today.The real losers are Square employees who joined after Square&#8217;s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3],"tags":[],"class_list":["post-466","post","type-post","status-publish","format-standard","hentry","category-pos"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p81nA2-7w","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/comments?post=466"}],"version-history":[{"count":5,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/466\/revisions"}],"predecessor-version":[{"id":4092,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/posts\/466\/revisions\/4092"}],"wp:attachment":[{"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/media?parent=466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/categories?post=466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/reformingretail.com\/index.php\/wp-json\/wp\/v2\/tags?post=466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}