3 ms·
I agree with option 1. But in order to calculate how much your salary is worth in equity, you'd need to estimate the worth of the company at some point in the f
by sprovoost 15y ago
I agree with option 1. But in order to calculate how much your salary is worth in equity, you'd need to estimate the worth of the company at some point in the future, your hourly rate and the risk that is involved.
In his case, if there is already funding, you could take the value of the company at the time of funding as a benchmark. If they got funding from a well established angel investor or VC, you also have an idea of the odds for success (1 in 10?).
What's the going rate for a full time developer?
Just multiply et voila... You know how much equity you want for your first year of work.
- sprovoost 15y agoBut I already see one problem with this: your co-founders are probably working at a much lower "excepted hourly rate". I've heard people claim that the average silicon valley entrepeneur earns less in 10 years than someone working at McDonalds. In other words, you may need to be willing to accept an irrationally low amount of equity if you need a cash salary.