Startup Offer Evaluation Help

Facebook nangabody
Jun 12 4 Comments

Series A startup with about 9M in yearly Revenue and a few big customers
My Profile:
yoe: 10 years (8 as SWE elsewhere and last 2 years as DE)
Current TC: 350-400K (base, stock, bonus) + 401K + stellar health plans

Startup offer:
185K - Base
No Bonus plans yet
No 401K yet
28K stock option at ~280K in todays value and ~45K in series A value (happened 2 years back)

Selling Point: A lot of upward potential stock potential (~10X value in 4 years) and potential to go public in 4 years
What I find interesting: Type of work is exactly what I want to do.

I know the stock options are ridiculously low even in today's value, compared to what I am leaving behind. Added to that potential 401K matches and Bonuses over 4 years, make the potential 10X growth seem really low financially. I would have lost 50% in that 10X stock growth by leaving my current job.

Am I evaluating it correctly?

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TOP 4 Comments
  • Oracle Flatlinerz
    You should ask them to at least match your current TC with their worthless shares at today's valuation
    Jun 12 1
    • Apple appl3
      Agree with this. Overall sounds like a good deal, but you should ask them to match the rest of your current TC with equity.

      When you join a startup, you do so knowing the risk of losing money (RSUs) that you’d get at a public company, but there should be financial potential for you to do way better if the company exits successfully.
      Jun 12
  • Amazon / Product Kristoff
    You can’t really compare paper money to real one. But sounds about right if you just look at numbers. May I ask what % of the company does the stock option represent?
    Jun 12 0
  • New / Other AuntHilda
    If this with $9mm in current annual revenue is going public in 4 years then I would love to invest in this company.
    Jun 12 0

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