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Ask HN: Equity Offer
I am relatively new to the startup world. As an early employee, I am offered options at a price with a total value of X. For a company of a total of 30 employees, what is a good framework to think about my compensation? I would love to chat with someone with prior experience who might guide me in the right direction.
- sethammons 5y agogenerally, count equity as a lotto ticket
- apurvak 5y agoSure. That is understood but how do I find out what is the good offer for an equity?
- sethammons 5y agoI don't think there is a good answer to your question beside "it is a good offer if it entices you to join their company." I guess you could ask what percent owner it would make you and what your liquidation preference is. Depends on how early you are too.
- SaberTail 5y agoYou are not being given X, you are getting paper that lets you pay X to get shares worth X. Their value is zero. At best, they're a lottery ticket. You can look at something like http://www.valuation.vc/ http://www.valuation.vc/ that uses data from other startups, to get an idea of what your odds are that they'll ever be worth something. Usually the odds are not very good.