Got an offer to join a pre-seed startup as the 5th or so FT employee at $120k cash, 0.5% of current outstanding common shares. Is that a reasonable amount of equity for the significant pay cut? 10 YOE in product design and tech consulting but never had to deal with equity before.

like
Posting as :
works at
You are currently posting as works at

Too low of an equity for a pre-seed company.

like

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?

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%.

like

Would you be able to share the link from the anglelist resource you are referring to?

https://angel.co/salaries/ui-ux-designer

like

Related Posts

likehelpful

How should I deal with an overly ambitious AAE who says yes to everything/creates extremely aggressive timelines?

I have to chew everything she bites off, and I'm tired of it.

like

Anyone been successful in setting up decent yielding passive income with little upfront effort?

helpful

Anyone currently employed or used to work at Hanover? Curious pros and cons. Any agents that work with them have any feedback on the company?

like

Have you ever had an ED/behavior student who liked to be restrained? Why and is that a common thing?

like

Working at a start-up, decided to recruit for Google's product management program. Would love to connect with anyone who has been through the interviews

like

Anybody still playing WoW? Is there a community for fish?

like

Wanted to know how easy it is to transfer from Alvarez and marsal taxand or other subsidiaries to tag. Also what’s the highest paying subsidiary for A&M?

Damn, Little Fires Everywhere is such a good series! If you haven’t seen it, you should.

like

Hi All, i am trying to prepare for FANG company still didn't get good material and guidance to prepare myself. Can anyone help me to how to prepare and get a job in this company.🙂

like

Hello all, currently i am working at Infosys as Technology Analyst. I am a Java resource with having 5.3 years of experience.

Can anyone please suggest if there are any vacancies so that i can apply there? I am looking for a job change.

like

For the bigger guys out there - what are some good brands for casual dress pants? I only have jeans and full suits, looking for something in between. Everything I find is targeted at thinner dudes

like

To anyone that made the switch from account management to project management, what made you pull the trigger?

like

I have dual masters degree and I am thinking towards MSCIS for 7 more classes. I am not sure if computer science will be helpful towards healthcare sector. I do not want to be more in debt but I am debating to get started atleast part time.

like

Finally bit the bullet and went overboard with 41mm pre certified 🤭 feeling guilty and happy at the same time

Post Photo
likeuplifting

i’m part of a mom group and someone posted about finding thier spouse cheating on them. another fellow mom of this group commented for them for fight for thier marriage because she was in a similar situation and let go too easily and had to raise 2 kids on her own. thoughts ?

like

Do people in SF offices live in Palo Alto/San Jose area? Is that a thing?

This is our first holiday season in the Nashville area, any suggestions on family activities/light displays we should check out? Our kids our 8, 5, and 3.

like

Started interviewing for a role at Google cloud in the bay area. Wondering if I could change my location preferences after the interview process, once I know whether I made it through. At what stage of the interview process does location come into play? Google

like

So I met up with an old friend of mine and she is not working at the moment. She was a senior level auditor. I thought about asking her to come back to public accounting and decided not to because this job sucked so much. I know it is bad, why did I put myself through and made second year audit manager.

like

Additional Posts in Startups and Entrepreneurship

Do you own any franchise or any small business? I am trying to get into one? What are good options which is doable along with a consulting job. What is the required level of investments and what kind of return you can expect?

like

What type of experience would you look for in a CFO for your startup? Coming from Big Four accounting and curious to hear what people think

like

Anyone else a bit of a sucker for start up books? What's your favourites?

Mine (so far!) are The Lean Startup, The Art of the Start 2.0, and Start with Why.

like

Startup idea I'd like some opinions on: a website that provides users with startup ideas. Our competitive advantage will be our people - plan on poaching entrepreneurs with only the most successful track records to be analysts, including Elon Musk, Travis Kalanick, Kenneth Lay, and Elizabeth Holmes. Will save on hosting costs by using Geocities.

Thoughts on viability?

like

Am deciding on a startup bank in SF. Anyone used First Republic and could DM me re their experience? thank you 🚀

like

Hey everyone, a friend of mine and I are looking to start a company, we’re both sick of the corporate world right now and working 80+ hours per week for someone else.
I’m a 2nd year analyst in Tech M&A Investment Banking and she’s a 2nd year associate consultant in Tech Private Equity.
We have some ideas but aren’t technical so we’re looking for a potential technical co-founder to join up with and either create an idea and build something together or join up on existing idea in process!

likeuplifting

Hi folks, I am working with a few friends on a fintech idea. I opted to build the marketing roadmapping strategy for the soft launch/prototype phase as I want to learn about the field. Any guidance where should I start? Any guidance, books, topics will be helpful 😊

like

How much do HR managers make?

like

I am looking at investing some money as an angel investor in new startups; the returns (and weighted risk) is definitely encouraging.
I would appreciate if you can share your experience and resources that you have used to get some good deals in this space.

like

Can anyone recommend good books or articles on startup org charts and hiring? Think we’ve hit early signs of product/market fit, but not sure who to hire next, in what order, and how the org should evolve over next few years.

like

Looking of ran ERP accounting software that is easy to install, flexible and suitable for medium sized businesses with global operations and to enable analytics. SB cost effective TCO. Any thoughts?

like

Interviewed with hiring manager at startup. Then HR says they decided not to hire for the role (made it seem like they are going to hire for another role instead) but will keep me in mind for the future.

Is this legit? Feels like a fit issue or they didn't get enough candidates

like

I’ve been involved in the building and growth of a small family business for the past 4 years, growing internally as the company continues to scale. I’ve been promised over the years a more defined leadership role with equity, but only promises. Recently, I’ve been offered a job at an analytics company with over 8000+ employees with a pay raise and substantial career growth. Any advise???

likesmart

Hello, I created a sole insert and sole grips for women's dress shoes. Is there any women in here that want to be shoe testers if so DM me and I can provide more information !!

like

Considering an exit to a startup that just completed a solid series B. They’re willing to provide competitive comp package and surprised how large the base is for a startup. Has me concerned about being on the high end and being the first person that comes to mind when it’s time to pinch a few pennies or clean up the books ahead of future rounds/IPO. Valid concern or am I overthinking it?

like

Hello fish, need help. I recently lost $16k in a startup company and now looking to make up for the losses. Can you recommend any freelance sort of work that I can do to recover this money over a period of 6 months? TIA!

like

I recently left public accounting to join a start up. I don’t have too many connections in this world yet, does anyone have recommendations for either articles, books or other sources of information I could use to get an understanding of the startup world and how I can make the right career choices moving forward. - *I’m on the product manager side*

Thanks in advance!

like

Any recommended events, groups, or organizations to get more plugged into Boston’s startup / venture capital scene?

Mainly looking to feel out the scene and network at the moment.

like

Hi! Does anyone have advice / resources for interviews as an investment analyst or chief of staff at a VC? Would really appreciate it!

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal