Hey fellow tech industry folks, I have a following offer from a startup: Base: $220k Options: 80k at $1 strike price Startup revenue: $100M Size of startup: 300 people Location: San Framcisco Position: Principal Software Engineer YOE: 15 years They are not able to share the total equity pool so dont know the percentage of these 80k options. Please provide your thoughts on whether this is a bad/average/good offer specially around the stock options since I am not sure how to gauge the 80k options number. I was verbally told that the current estimate is around $4 - $5 per share but I can’t confirm that number.
Strike price is $1
That’s the gamble.
If you don’t know what percentage of the company you own, it’s hard to tell. If the company had a $20B exit, how much would your stocks be worth then? (Assuming you’re stock hasn’t split or diluted) Can’t tell. If the company had a $180M exit? Still can’t tell. Many startups won’t show you their term sheet, so it’s a gamble. It can be an educated guess if you know a little bit about the business, the term sheet, and the founders but it’s still a guess. DM me if you want to.
When do you become vested? Day 1? 3 years in?
4 year vesting period with monthly vesting after the 1st year.
Are they series A,B or C shares? Are they LLC Units? Do they have voting rights? What happens if the company sells?
You should be able to see previous funding rounds in crunch base. find out the share prices for those rounds and get a growth rate. assuming no reverse splits companies like to IPO at about $10 a share so the grant is worth at least 700k or it's worth zero if there is no IPO.. We have record low numbers of IPOS in recent years,. Like 5x lower than in 2000. Can you survive 10 years onto 220K plus annual increases? Honestly I think it's a s*** offer my principal engineer offer came with a $2m equity option base and the company was already public.
Did you work at Apple before and you had 10k worth of shares?
Can u ask them what’s your strike price and all?