Thinking about joining a start up (already secured Series A funding by a reputable VC) for a SaaS product for Enterprises. I'd be employee #18 and the only employee who has subject matter expert in the industry we are targeting. I am not a developer, I'd be on the business side.
I'm being offered $160k base salary and $100k equity. This feels low but I was told that this is considered half a point ownership. I'm new to start ups as I've worked for bigger companies over the last 10 years. I'm not sure the terms or formulas to consider to ensure the appropriate value.
I'd love help evaluating this offer and questions to ask or consider. Any help would be appreciated.
At this point there’s still only about a 10% chance the company will become liquid at its current valuation or higher.
So factoring in the risk, you’d only be making $10k, not $100k. (Assume it will go liquid at its current valuation.)
Now, consider this against how much you’d be making at a large company. Remember, top tech companies have sky high valuations and that’s why startups and smaller companies are moving out of the Bay Area — they just can’t compete in terms of compensation.