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 you have been offered is competitive for an early-stage startup.
Salary: $152k is a good salary for an early-stage startup, especially in the current tech market.
Equity: 2% equity is a generous offer for an early hire, especially at a startup that has recently raised $3M.
If the startup is successful, your equity could be worth a lot of money. However, it is important to remember that equity is illiquid, meaning that it cannot be easily sold.
You will need to wait until the company has a liquidity event, such as an IPO or acquisition, before you can cash out on your equity.