I haven't worked at a startup before, so trying to gauge how likely it is that stock options would work in my favor vs. being a disappointment after 5 years. (Also would appreciate any thoughts about the long-term differences in career path for a DE vs. a PA). I'm currently at Amazon as an L5 BIE. TC is about 150k including stock. I have an offer from a Stage C startup for the equivalent of an L5 Data Engineer. Base is 135k and stock options at current valuation take TC to about 170k (although obviously not liquid at this point). They are projecting some big growth numbers which could take TC to the equivalent of 300-500k/year from the initial four year vest. All signs point to a bullish stance for the company. This would be at their HQ. I also have an offer from a late stage startup for the equivalent of an L6 Product Analyst. The base is also 135k, but there's also about 35k in targeted bonus (cash + RSUs) and another 35k in new-hire RSUs. This brings TC to about 205k, and possibly more if valuation increases after an IPO. The risk is obviously lower here due to higher cash compensation (with the bonus), the use of RSUs instead of options, and a strong likelihood of an IPO soon. This would be at a satellite office. I tried to negotiate with the Stage C startup since the PA comp is stronger with lower risk, but they are unwilling to change the offer much. There's nothing wrong with the late-stage company, but if I put compensation aside I'd prefer to land at the earlier-stage company. So a few things I'm looking for feedback on: 1) Negotiation: is this normal for a startup to basically just say "no" when you ask if they can match a stronger offer? 2) Likelihood of stock options working out: everything I've read online is very pessimistic towards stock options and recommends valuing them at $0 when making a decision. The first startup seems very strong and well-placed, but do any of you have prior experience with something like this? 3) Career path: I'm still undecided about what I want to do with my life. Both the DE and PA positions exercise different strengths of mine. The DE could potentially be a transition into SDE if I work at it, whereas PA might transition into Data Science? Although moving into DS at an L6 is much harder. 4) Any other thoughts that might be helpful. Thanks!
1. yes 2. all startups seem strong. $0 is the correct valuation. late stage is just as risky. most exits are acquisitions and late hires end up with nothing thanks to preference. 3. this isn’t a transition path. if you can’t decide, literally flip a coin. you can evaluate the decision after a year or two.
Beware of startups that won’t disclose what percentage of the company your fully vested options represent and what the last valuation was. You’ll have absolutely zero idea of what your options package is worth even with the most recent valuation. Run from these companies
They didn't disclose the percentage, but did tell me the number of shares outstanding. Based on that ratio, my ownership is 0.019% (which would presumably be diluted in further rounds of funding). I asked about how the deals are set up with investors, and basically it sounds favorable as far as startups go. More of a split-the-pot with employee stockholders than a situation where investors get a multiplier and are paid out first.
Ok if they tell u how many are outstanding you can effectively calculate your percentage ownership after fully vesting and exercising.
Software Engineering Career
Yesterday
539
The Ultimate Dream Company Poll
India
Yesterday
606
How to save India from destruction?
Tech Industry
Yesterday
1961
TESLA UP 14% AFTER HOURS 🎉🎉🎉🎉
Tech Industry
Yesterday
2353
ByteDance is officially fucked
Tech Industry
Yesterday
699
The new Tesla Model 3 P goes from 0-60 in 2.9 seconds
Do you actually believe they can grow 10x in 4 years at series C?
Fair point. Probably not in 4 years. I think there are some compelling reasons why the growth could be strong (large, relatively untapped industry) but obviously a lot would need to go right for that growth to materialize.