I got an offer from a well funded series C start up. What do you think about the offer? Since start up is small that i can be tracked back, I am not naming them here to protect my identity. first offer: role: Principal PM base: 240K joining bonus: 70K (35K at joining and 35K after first year) stock options: 25K stock options (0.08%) vesting over 4 years. revised offer: they increased base and joining bonus. base: $245K joining bonus: $90K ($45K at joining and $45K after first year) stock options: 25K stock options (0.08%) vesting over 4 years. total cash for first two years: $290K per year then $245K for subsequent years. I am not counting stock options for decision making but using that as an upward incentive if start up turns out a succesfull one. current TC: $250K (base + RSUs). Promoted to principal PM recently, got little raise in base but no new RSUs grant that I may get in next annual review. experience: 5+ years as PM and 12+ total I have never worked for a start up so there are lots of unknown. However, I feel strong that I will be able to leverage my PM as well non-PM experience and domain knowledge at the start up. What are your thoughts on this offer, expected wlb at start up (put 40-45 hours per week in current job) and any risks that I should consider for the final decision?
My suggestion in your case would be to find a public company whose total comp exceeds your current comp. With a current comp of $250K I don’t think that should be hard in the Seattle area as most of the megacorps have a presence there now.
If you don't believe the startup stock will be worth anything, don't take the job. It's obviously a risky bet but the upside is the only thing that can make a startup worth it. If you're going to discount the startup stock to zero, it's not fair to expect them to match comp with a public company that can offer RSUs. Especially not fair to expect them to break the bank for someone who has never even worked for a startup before. Sounds like you should politely decline.
Got revised offer. Updated the original post.
How stable is the startup? Have they had layoffs? Since the difference in TC seems minimal, what is the motivation to move to the startup?
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Compensation shouldn’t be the primary motivation to join a startup. Chances of the startup comp exceeding your amazon comp long term are less. Join if you think you can have more impact and increase your breadth of knowledge at the startup. If it is a fast growing startup you will learn/grow a lot at a startup than at a big company.
Larger impact and fast learnings are part of consideration, but not at the cost of $$$. Do people ultimately leverage on their learnings from startup experiences when they go back to Megacorps? I am also in late 30s with young kids so financials are important.
If your final destination is a mega-Corp then you should probably jump to a megacorp now. I haven’t seen people jump from startups to higher level positions in megacorps unless the startup gets acquired - in which case they sometimes get to keep their startup title at the megacorp. Most startups even past Series C or D never go public so your stock may stay as paper money for a long time.