{
  "id": 13747801,
  "title": "Your Startup Shares Probably Aren't Worth What the Funding Headlines Suggest",
  "url": "https://urgent.news/2026/10/11/your-startup-shares-probably-arent-worth-what-the-funding-headlines",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-11T14:51:04.000Z",
  "source": {
    "name": "HackerNoon",
    "slug": "hackernoon",
    "url": "https://hackernoon.com/your-startup-shares-probably-arent-worth-what-the-funding-headlines-suggest?source=rss"
  },
  "original_language": "en",
  "account": "Startup valuations often appear much higher than the actual value an average employee or founder will receive. Two key factors contribute to this discrepancy. First, preferred shares held by investors have special protections like liquidation preferences and anti-dilution rights, which are valuable. Employees and founders usually own common shares, which come after preferred shares in the payout order and lack these protections. This gap can be substantial, especially at early stages. The second factor is the secondary discount, which is the reduction in value when a private buyer purchases a minority stake. They face illiquidity and information risks, so they price the investment accordingly. The realistic process to determine your share's worth involves starting with the common-share 409A valuation, then applying a discount for the private, minority, and immediate sale. This results in a smaller number than the headline valuation but represents the true value. Knowing this number can help you negotiate with confidence rather than feeling shortchanged by every offer.",
  "summary": "Why your startup shares are worth less than the last round's headline: preferred vs common, the secondary discount, and the number that actually matters.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}