The company recently got $3M investment. I’m being offered $152k salary and 2% equity, vested over 4 years. Is this good?

My thinking is that 2% of $3M is about $60k, so I could treat that as an extra $15k per year. But if I look at the valuation based on that investment, it is probably worth 5x that, like an extra $75k per year. All in all it is over $200k compensation, which I’m grateful for, but it’s on par with a tech job at a big tech company. Are these reasonable assumptions, or am I missing something?

  • blueberrywalrus@alien.topBEnglish
    1·
    10 months ago

    First, $3M investment at what valuation?

    Second, this all really depends on your earning potential outside the role, and how you value stability.

    There’s a very good chance that you’ll be out of the role in a year (whether it be the firm failing or it being a shit show) and higher chance that the equity will end up being worthless.