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?
On top of what everyone else is saying, it’s also important to realize that as an early employee with a large equity stake, you will have a large responsibility for creating the success outlined here. This isn’t the kind of thing where you hope that the company does well and you profit. You are the company (well, a big chunk of it at least).