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?
The deal might be ok depending on your previous career, but what nobody said so far is another problem with the salary. It’s quite high compared to the amount raised. They will either not hire many people or won’t have 24 months of runway. Both options mean that it’s less likely that they reach series A. Current market conditions are terrible for selling any products. Companies are very conservative with their budgets and spending. I’d talk to the founders and figure out what their plan is to reach series A and how they will spend the 3M. Otherwise the 2% are worth zero without even starting. If the salary is fine, you could still do it, but I’d rather spend my time on a startup that has a chance.