Valued at $11 Billion, Bolt is hoping to make just $50 Million in revenue this year: https://www.pymnts.com/news/investment-tracker/2021/headless-commerce-startup-bolt-eyes-14b-valuation/
The company has been valued that much because investors (BlackRock and others)
wrote a cheque which valued it that much. The problem is that if it turns out it isn't worth that much then the investors have agreements to get all their money back before anyone else. Its too long winded to explain here.
Anyway, the 27 year old founder and CEO yesterday announced to everyone that “We rolled out THE MOST EMPLOYEE-FRIENDLY stock option program possible.” https://archive.fo/fSCWX#selection-627.41-627.113
Effectively the plan they have outlined means that if the employees go through with it, they are personally liable for paying investors if the company is not worth $11 Billion. The employees who go through with the plan may end up outright bankrupt, losing their homes and everything.
Read the comments in the replies (and the quote tweet replies) to learn more. https://twitter.com/theryanking/status/1493390184897032201
Bolt hopes to get $50M revenue this year, but it has 500-1000 employess and an office in San Fran. If the median pay is $150k per employee then the salaries alone would be 150*750 = $112.5M per year. That doesnt include rent. Their ambition is to lose only $62.5M this year. Companies get valued by growth rates and future expected earnings, but they have a great deal yet to prove to justify valuing the company at $11 Billion.
One commenter wrote something that WSB posters will get: They've structured a put option secured by their employees personal assets for an illiquid security.