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IMHO, stay put. At your compensation, it's going to be nearly impossible to join a startup and have the opportunity cost make sense. Do what you're doing for a
by SmellTheGlove 5y ago
IMHO, stay put. At your compensation, it's going to be nearly impossible to join a startup and have the opportunity cost make sense.
Do what you're doing for as long as you reasonably want to, or until the comp drops off. Hopefully you're saving, and then you can either be a founder or an investor/advisor once you want to get involved with a startup and have it be better worth your time.
>- If I accept a position with 1% equity, the company exit would need to be at least $500M just to match my previous comp.
Layer in some assumptions here and I think it needs to be a lot more than that. I think, currently, it's on average 5-7 years between first funding and IPO, with let's say 5 fundraising rounds. [0] Being optimistic and assuming 10% dilution each round, maybe you have 0.6% at IPO time. To cover that 7M of opportunity cost, you need closer to a $1.2B exit.
This isn't even factoring the odds of picking a winner that actually exits! Unless you really don't like what you're doing right now, it makes sense to keep that going as long as possible, then exit to the couch and do whatever you want.
(Also, someone tell me if I did bad math. I do bad math.)
[0]: https://about.crunchbase.com/blog/how-many-rounds-of-funding-do-companies-raise-before-exiting/ https://about.crunchbase.com/blog/how-many-rounds-of-funding...
- deanmoriarty 5y agoYour math is good, but even too conservative regarding dilution. See my reply, I am a living proof of your math.
- SmellTheGlove 5y agoI just saw that. I knew 10% was pretty optimistic, but wow, I think you've also talked me out of ever joining an early startup :D I'm on my second unicorn, joining around their D both times. If one or both of these go public, I might try and do it again, or just go to one of the big public tech companies for a while if they both have solid IPOs. Always did want to work at Google.