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There's guides out for evaluating startup equity. Here's a couple. https://www.holloway.com/g/equity-compensation https://www.holloway.com/g/equity-compensation
by chris11 5y ago
There's guides out for evaluating startup equity. Here's a couple.
https://www.holloway.com/g/equity-compensation https://www.holloway.com/g/equity-compensation
https://manual.withcompound.com/manual-company-equity/understanding-startup-offers https://manual.withcompound.com/manual-company-equity/unders...
I don't agree you should assume equity as worthless. Especially for larger vc funded startups. But equity can get complicated, and it's possible for a company to have an exit and for you to lose money. But the majority of early stage start ups will fail.
Though the $120k offer seems much better. Could you negotiate equity or improve salary? 100k*.07 means they are giving you the option to buy 7k worth of equity a year. You are giving up 60k a year in lost salary to do that. So your equity would need to about 10x before you make up the lost salary.