Review offer from a Series B start up
Base: 205K Options: 15000 per year at a strike price of $1.05 and current value $2.50 (4 year vest with 1 year cliff) About the company: 90M total funding across two rounds. Current valuation (assumption) ~300M This is the first time I am considering a startup offer so I would like everyone’s thoughts on how to evaluate this offer I feel the options are a low ball offer. Especially since I should be able to get an offer from a public company >400K. I see the company doing well in the future but probably not exploding growth. I’d assume a 10-15x current valuation. Even in an ideal best case scenario(low probability) at 15X growth my equity will eventually be valued at 2.25M in about 5-7 years. To me this return over risk does not make sense. What offer would you ask for? What more info should I ask for before making a decision? Is there something like levels.fyi for startup offers? I’m aware of topstartups.io but that doesn’t have as many data points What are some other blind spots to look for in an offer? Any help is appreciated! YOE: 5 as SWE Current TC: 320K #startup #faang
Levels.fyi
$205K is a decent base for 5 YOE. The options are worthless until an exit event, which may be in a decade or more (or 80% of the time, never). That said, you can easily negotiate for more options. If you are looking to up your skillset that will happen at a small company where everyone does "whatever needs to be done "
Base is good, but your equity cut is too small based on that valuation. Would negotiate for a lot more where a 10X can make a difference for you. DM if you have questions
Actually I thought it was quite generous considering. OP can negotiate, but that could get the offer rescinded.
Eh any company that rescinds based on negotiation is not one worth joining
If you think that way, you aren't suited for a startup - especially an early stage one. Work at a late stage one or preferably a company that went public if you want more. You are already kinda overpaid as it is imo.
Not sure what you mean. What way? Hoping for a good compensation? How would you approach this?
Startups rarely pay high TCs at early stages unless they are poorly managed. If you are looking for them to match what you have now, you are asking for too much. Don't compare your TC to larger public companies because you typically have RSUs, ESPP, and other "bonuses" startups can't offer. I think that your offer seems decent given what you shared here.
P.s I will also try to push for a % to be eligible for “secondary”
Unless you’re underpaid, startup will rarely match your liquid TC. Only worth it if you believe in options and more importantly, want the experience