Is it ok to get paid in shares only for the start?
Would you accept an offer with only stock option comp? No salary till critical mass is reached which could take 4-8 months. Company has potential and a series A payout can be huge with the gained shares. Facing a current dilemma!
Is it ok to pay rent and food with shares?
Well the company "ceo" agrees to pay for living expenses
You should explain your situation better. Not enough info.
If you're willing to take the gamble...
A series A isn’t a payout. It’s not an exit event. You’re being dumb.
But what if I cash out some of my shares during the investment round?
This isn’t usually an option anywhere I’ve worked. The exception to my post is if you’re a founder and getting at least 20%. Then it’s a gamble that many reasonable people take. But don’t forget even with potential 9/20 startups don’t have good exits
Thanks! Theres much to consider and learn
Yes, if it's a lot of shares. It's called being a founder and people do it all the time.
What's considered a lot? If I'm not putting cash in, just time? But the work load is founder lever
Very often it’s not. “Founders” aka young people get tricked into owning 2% instead of 20% because “they didn’t put any cash down” “not as much experience” etc
Is owning 4-6% by series A not considered enough? If the company is valued at ~$10M ... btw thanks for the feedback!
Who valued it at 10 million? Was that a funding round? You have no way to make money unless it does good and you can sell some shares in another round or if it ever goes public. You can’t live for free
How many shares are we talking about? 50% of the company?
More like 5%
Then no lol
If you're cofounder with ~15-30% equity and you have enough cash to sustain yourself, then sure. Otherwise, this sounds like a terrible idea.
Don't be fooled into working for free.
Isn’t this illegal
$1 salary for this guy
No he has to be paid at least minimum wage in cash