Comp expectations for a NYC-based Series A startup
I am interviewing — final round is next week — for a Director of Analytics role w/ a Series A startup that is backed by a tier 1 VC. Does anyone have an idea of reasonable comp expectations? I was thinking 185k base, 20% bonus, and .25% in equity.
Before I suggest anything, what is .25% equivalent to? Do you have rough estimate of what your TC would be? I am director of analytics at my current employer and would love to help.
I think they raised $20MM, so assuming the multiple was 4x, .25% would be ~$200K.
Is that $200k FMV - strike price? Or just literally % of the current value?
Ok so base (185k) + bonus (35k) puts you at ~225k and then you are getting ~200k in equity (assuming 4x multiple) which will put you at ~275k for the first 4 years. I believe offer is good if you are planning to stay there for 4 years and leave but you should push for bit more equity (may be .50%) if you are planning to stay longer than 4 years or ask for sign on bonus up to 70k-100k. Hope this helps.
Yeah, that was super helpful! I really appreciate it:)
A Series A startup that’s only raised $20M to date is not flush with cash to payout significant cash bonuses/signing bonuses at this stage How many employees do they have?
Base and Equity are reasonable. Haven’t seen bonuses like that very prevalent at early stage startups esp if they’ve only raised $20M
If there is no bonus, do you think I should push for a higher base?
Maybe slightly higher like 200
TC of $222? Way too low. Options aren't RSUs and can't be valued like they are, too many people make that mistake. .25% @ 200K strike = $0, you only get growth above current valuation. Don't forget about dilution from future rounds. .25% at A could easily be .025% at IPO, if that ever happens. Your stock is probably worth 0.
Rather own .025% of something huge than .25% of something small.
.025% of a 1 billion unicorn is $250k, subtract the strike price of $200k and your left with $50k. You'll probably have to wait 10 years for that 50k. So if you had 20k of RSUs today and invested the proceeds in SP500 for 10 years you'd come out better than the best case for this startup
Equity should really be more like 50 basis points not 25 for a Director role.
What is your YOE? Fwiw i am a first hire at a seed stage NY based company with 170k base, 1.5% equity at 2YOE
My perception is that my comp is relatively high for my situation because I was a personal friend of the founder
Seed stage equity vs Series A equity are very different
Fintech recruiter here. DM and can discuss more specifics. On surface your numbers are aggressive but not unreasonable.
It’s not common for early stage startups to give bonuses. So you may end up just base + options. I’d say push more on the base, sth 200K or ask for more options. 0.25% seems on the lower end for a director role, ask for at least 0.75%. This is reasonable for a series A.
Which industry is this startup in? Is it healthTech? FinTech? MarkTech? Try and relate it with the parent industry
you could ask for more equity. Like 1% given the seniority of your role
I disagree - there tends to be a proliferation of Director titles with early stage startups. .25% is pretty good honestly. I’d push up to 200 base
Cash is king. Equity at series A is worth nothing