Late Stage
Companies that have raised Series C or later and are approaching IPO or acquisition readiness.
Definition
Late-stage refers to companies in the Series C, D, or later stages of funding. These companies typically have substantial revenue, hundreds of employees, and are within a few years of a potential liquidity event. Late-stage investors include growth equity firms, crossover funds (that invest in both private and public markets), and hedge funds.
Why it matters
Joining a late-stage company means lower risk but also lower equity upside compared to early-stage. The strike price is higher, grants are smaller, but the probability of a liquidity event is much greater.
Example
A company at Series D has $100M ARR, 800 employees, and a $2B valuation. A new engineer receives 5,000 options at a $40 strike price. If the company IPOs at $80/share, those options are worth $200K.