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Let's say the big tech company pays you 350k/year and the startup offers you 150k/year. If you were to keep working where you are, but invest 200k/year into thi
by akomtu 3y ago
Let's say the big tech company pays you 350k/year and the startup offers you 150k/year. If you were to keep working where you are, but invest 200k/year into this startup, how much would they owe you? If they've just sold 40% of their company for 800k, your 200k buys 10%. And keep in mind that investors get special terms that protect their investments, so the founders can't just print more shares to dilute the investors' stake. With this in mind, if they offer you 1% of common stock vested over 4 years with no contract to protect your share, they have a very low esteem of your math skills.
- akg_67 3y ago+1 Agree with everything you mentioned. Also, make sure you don't get a long vesting period. $200K a year in equity based on latest round valuation, vesting monthly. Just think of it as receiving comp as $200K/12 but in equity. As a #3 employee, assuming #1 and #2 are founders, you are as close to founding team member as possible and you should be compensated similar to founder than a #30 employee. Definitely say NO to 1% of common.
- simantel 3y agoJoining a company at that stage as a non-founder is never going to make financial sense. They won't give you meaningful equity, but also can't afford to pay market rate salaries. The only reasons to do it are to learn from the founders or as a way to grow with the company into a manager/director much more quickly than you could at a bigger company.