Is salary + 1% equity a good offer from a bootstrapped startup? That's the offer once I start full time, which would be when the product is launched. Currently I'm with them part time. I'm the 4th member, and the other 3 are founders/c-levels. Those 3 have the equity split between them currently. They said that they will be raising $ post-launch. I'm just wondering if I should ask for more than the 1%. There are $$$$ commitments from multiple partners who will become customers at launch. There are also VCs who plan to invest post-launch. Current job TC: 140k YOE: 4 #equity #startup #bootstrap
Hard to tell. The chances of the equity being worth actual money is low. Honestly the answer really depends if your risk tolerance and how much you believe in the product/organization
This is what i figured. I started part time so i can feel it out, learn more about it, all while enjoying working on something on the side, with fun people. Thanks!
You’re working for free?
I had the same dilemma. It boils down to 3 things 1. Is the salary they are offering enough to sustain your lifestyle? 2. Do you believe the product is a market fit and truly solving a problem 3. Are the foumders smart enough to grow the org and get proper funding with a proper valuation Also make sure in the contract how they plan to dilute you with funding rounds.
So yes, from what I understand, the product is a fit and is most certainly solving a problem. The founders are super smart and extremely motivated and hard working. They are also fun. The only thing i don’t know yet is the salary, since we haven’t launched yet and there’s no revenue yet. I was mainly just wondering about how to think about the equity aspect.
Well if thats the case then try and negotiate a bit more, 1.5 if not 2 and go for it. You will definetly learn a lot and if things dont work out in a couple of years you can get a job anywhere
What’s the salary and your location? What’s their valuation?
1% is to low for first non-founder. YOE isn't super relevant, but you should ask yourself honestly if you are a great choice as a first employee. If not, then that's a red flag about the company. Them not offering equity now is also a big red flag. I would personally walk, not even ask for more. But that's just me.
Actually, I’m a perfect fit for many reasons. Both sides are super happy about that. I’m just curious about the equity at the moment. Technically the first non founder is the CTO. I’m the second non founder, they brought me on much later in the process. You think I should be getting more around 10%?
Zero chance you get 10% as just a regular employee. Maybe upto 2% if you're the absolute perfect candidate for them.
Do you have another job beside this ? What a bold move to work without proper statement on the salary
Yes I’m at Citi. There are reasons why I trust them, they weren’t just strangers that found me online. They are allowing me to stay part time until I feel comfortable going full time. They hope that will be within a month of launch time, but they understand if not.
“pretty sure?”. if they are clear that they 100% need to raise money this is probably decent for what i assume is your low experience. if they are only pretty sure this is worthless
They don’t need to raise money, but they’ve been approached multiple times. They plan to raise after they launch. Updated YOE and TC in post
if they never raise you can be certain your equity stake is worthless. so if they are telling you they are a self sustaining business that’s a little worrisome. just be sure that their plan is to raise money
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We need more context. What’s your YOE and what salary are they offering you?
I have 4 YOE as a web developer. There’s no salary number yet since there’s no actual revenue yet. I’m going to ask for projections soon but i was wondering about the equity portion of it.