Negotiating startup equity as a design agency

New
HoHq24

New

HoHq24
Yesterday 2 Comments

I'm part of a design agency, and this client we're talking to values design. One of their co-founders is ex FB & Uber Product person.

The company raised $4m in seed (pre-money) at a $20m val. They have ~8 employees in total. Mix of engineering, sales and ops.

They need us to come in and establish Product Design long-term and build an MVP short-term.

I'm thinking of reducing our prices with a view of adding equity, as we're coming in early on and helping build MVP to directly raise a Series A.

Looking at requesting between 0.1-0.5% equity alongside the retainer which would be around $8k/mo (they need Senior Level Product Design).

I don't want to request too much and have no desire to price ourselves out here, but seeing as we're in early thought it would make sense to get equity share as we're directly contributing to a funding round and establishing a core part of the business.

What do you think?

#startupequity #equity #startup

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TOP 2 Comments
  • Google
    bigg123

    Go to company page Google

    bigg123
    go to them with 2-3 options, equity/hybrid/allcash. make hybrid equity+cash option most appealing
    Yesterday 1
    • New
      HoHq24

      New

      HoHq24
      OP
      Yep this is what we're thinking.

      Going to offer 0.2% EQT with a substantially lower than market price for equivalent designer.

      Then No equity and just under market rate for designer.
      Yesterday