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Poor Chris Wallace!
Good bye life. See you on October 16th. 😭
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Anyone in Miami at Art Basel this week or next?
Book recommendations for staring a CPG company?
Coach
Startup pay has no specific formula to it
It depends on how often they issue stock unit, how quick they’ve been running out of cash, how fast they are growing, what industry they are in, when do they plan to IPO, how big is the startup, how is the stock distribution among the big fishes, etc..
Just make sure they are paying you more than what McK would’ve paid you.
When I said pay more I mean including potential equity value
MK1, is right but he’s wrong about compensation. If you’re doing it for the direct cash compensation only at series A then you’re in it for the wrong reasons.
Didn’t mean direct cash
That is bound to be lower. And the earlier the stage the company is the lower it’ll be
Depends on your position. For an ex McKinsey consultant in top 20 employees I’d think 1-2% would be reasonable in lieu of cash comp. congrats sounds exciting!
Subject Expert
Less than 1% unless he's a co-founder.
Depends what # employee. I think comp 150k, 0.5% equity
Congrats! Make your decision based on how you feel about the company, its direction, your role, and the execs. What you get paid now is almost irrelevant compared to what it will be a few years down the road. It could be massive, it could get bought, it could be out of business.
If you’re being hired during Series A round, would you expect your equity to be diluted when subsequent rounds are raised? Something to consider before you overvalue your comp.
Mentor
Yes, always. Dilution is a given in a successful VC-backed startup.
Traditionally you'll go off their last valuation and consider the vesting period and cliff. Most common is a 4 yr vest but it's got a 1 year cliff. Just know if you leave at 10 months you've just wasted your time. You'll also want an accelerated vest in the event of a liquidation if you can swing it.
You're also going to bake in risk so if your value is 200k annual and they give you 100k cash you need more than 100k annual projected equity to cover your risk - even if they're growing or doing well. You're negotiation based off both of your values today.
Is it dilutive is a good research points as well. Realistically it most likely is but just important to know if they plan to raise additional capital. If you get hired and then are about to go for a round and your shares will immediately get diluted that's something you'll want to bake in to the ask value as well.
Mentor
No. All startup employees get diluted. To be asked to be made whole for that is bonkers. If the startup is successful, the pie grows even if your share is smaller. You are considered compensated by the increasing pie size.
Following... anything different with a series B company? Also how do you check the valuation? Thanks!
No one will be able to give you a definitive answer, unfortunately. You obviously won't get as much cash as consulting, and the equity is impossible to predict, so it all comes down to if you think the equity risk is worth it. You should check out these resources as they could help you determine if you are getting a pretty fair deal: https://github.com/jlevy/og-equity-compensation/blob/master/README.md
https://www.indexventures.com/rewardingtalent/the-index-ventures-experience
Most of the comments are based on generalized comps. I will approach with some data points. What's the value you bring to the table, with multiplier effect and then, only then, factor in the comps. I have backed away from a deal where I believed I was not bringing enough value to the table. Also I am a bit risk averse ymmv.