A seed stage company with 600K raised is offering my cousin 80k base and 0.5% equity. He has 2 years of experience and works for a series B startup as Front End/ Full stack engineer. TC 120K with 25K options. His company is not on blind. Is this a fair offer? Thoughts ? My TC: 375K
Thanks for your time typing to respond . He does not have blind . I hope you know that not everyone can get on blind.
Any company associated email address is a valid address so I don’t see why not they couldn’t get on.
Lol he should ask for 600k
Hmmmm
this equity seems high for 2yoe
This is the first logical answer ... thanks! I have no idea what is high and what is low here. He asked me and I deferred to the collective wisdom of the crowd on Blind!
I thought the base was low at 80k and they compensated it with equity, which in my opinion might only be important if company does well.
Is this in the bay area? That base might make for a tight budget. Also, is equity options or RSU? If it's options, what's the total cost to exercise?
These are options and he will sign 83b . He will be paying 50 cents and will have to file 83B. My guess is that he will exercise at time of grant with a cliff of 12 months and company will buy back any unvested at the price they were bought if he leaves or is terminated . Is there some online documentation I can refer him to? He will be first 2 engineers and that is what excites him the most :-). Equity part is a bit tricky.
50 cents per share? How many shares? (Also I don't know of any online resources; not really my area of expertise, sorry)
Bad offer if Bay Area. How is he going to live on 80k base with illiquid options?
0.5% is low with that much funding. I would demand no less than 1% if not more. It's probably worthless anyway. But that's start-up life. 14% of all their money isn't unreasonable. It's really more like 18% after payroll taxes. So I wouldn't expect more base. But 0.5% equity is an insult. Maybe see if they'll offer 8 weeks vacation since they simply can't afford to pay a decent base.
ask your cousin to post