Series A Offer
I have an offer from a Series A company, and I'm trying to figure if it makes sense to join. I told them my base expectation but not equity. How much equity should I expect or ask? How do I think about their Series A valuation? Edit: Details YoE / Role: Close to 6, ML Engineer Current headcount: ~15 total Series A: ~10 Million recently (mid H1 I think), not sure about other specifics about the round.
If you can, look at the breakdown of investors. Angel investors, Institutional, etc. More institutional means there will be more preferred shares out there which will decrease the value of your equity. Also see if they've done any debt financing. This will impact the likelihood of an exit and how much you'd see. Others here will have better advice but secure as much cash as you can. I have a number of worthless options that haven't amounted to anything thinking they'd be a lottery ticket. The days of Google, Facebook early employees are dying. Companies are taking longer to exit, options are being diluted more and employees are being hit with taxes. As someone who has been in the startup game 10 years, don't value it as much as you are inclined to.
Need a few more details. YoE / Role, current headcount, total size of round, pre-money valuation, cleanliness of round (ie was it just announced as officially closed but may have had a multi-stage close where 1/3rd or more of the money may have already been wired / spent)?
Added details.
Aim for at least 15% more cash comp than you make now. .025% - .05% of the fully diluted cap table.