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I'm not sure how the equity is currently divided, but these are very good questions, thanks. The company had an A round and it has about 10-15 employees. I sho
by bobp 19y ago
I'm not sure how the equity is currently divided, but these are very good questions, thanks. The company had an A round and it has about 10-15 employees.
I should have said that founders are exposed to greater risk in the very early days of the company, but afterwards the chance of meaningful financial payoff for employees becomes much smaller. Most startups won't be the next Google or Ebay, and I think they should take that into consideration when incenting their employees with stock options.
- dkokelley 19y agoIf the company already has about 10-15 employees, you're not looking at much equity left, assuming that the other employees get the same you do. If 2 founders and 10 employees got equal amounts, you would be looking at 8.3% per person, and if there were 17 people total (15 + 2 founders, not including you) that puts the company at 5.9% per person. This is just a starting point, You have to assume that the founders have the lion's share of the equity, and that the amount of equity per additional employee trends downward the later the employee joined. It could be that the company only has 5% equity left for future employees, and so they have to offer only a small percentage of the equity. In any case, try to see what they have available, and again, offer to take only a token salary if anything in return for a greater equity share. Good luck!