I'm the first hire. I love the team and company but they can't afford to increase my salary and I'm based in SF so barely making ends meet. I'm early in my career and could probably quickly grow into a senior role at this company if I stay. Deciding whether to prioritize compensation or career advancement - equity (0.5%) seems to mean nothing at this early stage.
It does mean nothing at that stage and you’re a little early in your career to be gambling it all on a moon shot unless you not only believe the product is the right one at the right time AND the people running the show know exactly what they are doing.
They are first time founders and managers. I've actually been working here for a year (no savings given this salary) and they offered to double my equity but cannot offer additional compensation.
When do they plan on getting seed?
We raised a 300k pre-seed just a few months ago so I'm assuming not anytime very soon. There's less than a year of runway left.
So you’re pre seed; there are no other investors to speak of and they only offer you .5%... how many people are there? Pre seed I would expect main investor(s) to control 90% and 10% split equitably between employees
There are 7 people total - including founders and myself. Not sure what the cap table is - I'm not sure if it's appropriate to ask to see that. Is it?
0.5% equity is a joke in this situation. You'd make more money as a garbage man in SF.
Haha you're right! Waste Management Garbage Truck Driver salaries - 1 salaries reportedSan Francisco, CA Area $65,000
Only a first time founder would offer such terrible terms to early employees. Start looking.
What are the right terms?
the terms are good. .5% for a noob junior is really great. low salary b/c they don’t have seed money yet.
Curious how it goes. They’re trying to stretch their runway, and all the founders are sacrificing themselves I’m sure, but you should have 5.0% imo because it’s going to get diluted and you are taking a ton of risk.
Yes, tons of dilution will happen I'm sure. However, I'm very junior (2 YOE) so I think 5% is not the most reasonable ask?
I don’t think they’ll give you 5% unless they want to make you almost a cofounder. However, your current salary is a joke for PM with 2 yoe. There are plenty of startups that can pay more because they have funding, which is a good sign about the company’s future prospects anyways. Honestly interns in startups get paid more (no equity but you have very little equity).
Get outttt
😂😔
You're pretty much a cofounder at that salary. If you believe in the company ask for 5%
You will get better compensation and opportunity for career advancement elsewhere. You might get a senior label slapped on you in the next year, but that may actually be a bad thing. It will make companies expect more of you than you are capable of given your experience level. It's also unlikely that even in a big seed round or series A that they will nearly triple your salary to get to market rates. Early stage startups can't afford to pay top of market rates, but they're paying you less then half of the bottom of the market and not giving you truly meaningful equity in exchange. Even if somehow the company sells tomorrow for $10 million you would get at best 50k which doesn't even bring your total comp up to market. You're probably years away from the company having a valuation that might make this arrangement worthwhile and that's if you don't get diluted along the way. And of course there's a decent chance your equity goes to zero. And a near certainty that you won't be able to cash in on that equity for years. Move on. There are plenty of seed and series A startups that can pay more than 2x what you are making, offer you similar equity, and give you the same or better opportunity for career growth
Thank you for this, Sbgu62. Much needed to hear that
👎🏻👎🏻
Wow they must really not care if you join
I've been working here for a year :/