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How much do HR managers make?
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Too low of an equity for a pre-seed company.
Subject Expert
Yes. Remember, you are going to get diluted. Also, if you are the 5th hire, ask for early-exercise restricted stock. You should get in on the qualified small business stock tax treatment and establish your basis early.
What’s the current valuation?
Subject Expert
Pre-ssed, so under $5mm. The company is just an idea right now....
How much of a pay cut is it? Based on your experience, I’d guess around 50%, so the upside needs to be huge.
But, without knowing that, I’d agree with the others that it’s low equity. Pre-seed is a straight up gamble, so joining this early should have a serious upside.
With 10 YOE, I’d expect you to be coming in as head of design and I’d want somewhere between 2-3 percent. You’ll have a ton of work ahead of you and if you don’t have enough equity, you won’t feel motivated enough to stay.
That’s about right in terms of the pay cut after factoring in bonus. AngelList does suggest 0.5% is around median equity for a design role and if I model a hypothetical employee equity curve where each new employee gets 10% of the remaining options pool that puts employee 5 at 0.66%. I will say that I’m not really considering other startups at the moment (would just continue to coast in consulting or move over to big tech if I decide not to take this) and I have strong reason to believe the company will be successful in future fundraising so I wouldn’t put the level of risk I’m taking at a typical pre-seed level, but yeah I’m wondering if I can negotiate that at least a little closer to 1%.
Would you be able to share the link from the anglelist resource you are referring to?
https://angel.co/salaries/ui-ux-designer