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?
Depends on your other options and how successful the startup ends up being. You should also consider some other factors, like if you think you’d enjoy the position, if you’d learn a lot, and if you think you’d like workers with these founders.
The only benefit of the huge company I see is the huge name, but with career options and everything else the startup is just so much better since you can create your own job. I would make it mostly dependant on how good our team is. How much I trust the founder to be successful. Then I think you can even have a pretty good edge against the risks that your Startup fails.