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This is the kind of thing I'm going to talk about at the event. But here are some rough calculations. If you were the first person hired by a YC startup you'd
by pg 17y ago
This is the kind of thing I'm going to talk about at the event.
But here are some rough calculations. If you were the first
person hired by a YC startup you'd probably
get between 3% and 30% of the company. I know that's a
wide range, but that's the range I've seen. Suppose to make
the math easy you got 10%. Suppose you get diluted 20% by
funding rounds before a $10m exit. That yields $800k.
In a $100m exit you'd probably have been diluted more, because
the company would probably have taken VC funding to get that
much. So suppose your 10% was diluted by 2/3. Then you'd
get $3.3 million.
This is assuming you're the first person hired by the startup,
of course. The amount of equity you get decreases
by time to a power. Someone who joins the
company after 6 months would get way less than half as much as
someone who joins after 3 months. It's rare
for a series A funded startup to give more than 1% to a
programmer.
- nl 17y agoWhat's a typical salary for the same person? (Obviously this affects the risk/reward trade-off)
- pg 17y agoSomeone that early would probably get the same deal as the founders, which would vary depending on how much funding the company had. If the company only had a small amount of angel funding, they'd be paying themselves no more than living expenses. If they had more substantial funding they might get 50-70% of market rate.