Series B offer
I’m new to the world of ISOs and negotiating startup equity. I have an offer from a Series B startup that raised $40 million. Is this a good deal? Role: Staff Engineer YOE: 11 Base Salary: $200k (their min is $180k, and I asked for at least $200k early on) Options: 7,000 ISOs Strike Price: $2.75 Share Value: $16.20 Average Dilution: 20% (<- I don’t know what this means) Vesting Schedule: 4-years (1-yr cliff, monthly after) Exercise Window: Unsure, I’m going to find out They also have a matching 401k (4%). Current TC: $305k (base $186k), but I think those #s are unrealistic
Really light for a staff offer, crypto startups are still slinging 600k+ for staff level
600k as in cash?
I heard Coinbase was cutting their equity grants for people by 30% or more. Either way, I don’t really want to work in the crypto world.
You gotta ask how much company equity that is. 1% of the company? 0.1%?
that’s about 80k for 4 yrs, it should be 10 times of that
are you willing to buy those options for 20k+ knowing they might be worthless? ask for a sign on bonus.
Check out https://offers.wiki I made a website which is undergoing construction at the moment but it calculates upsides for you Looks like your TC is around 500k if the startup 10x (with 50k taxes)
Ask for at least 15000 options
10x valuation is a wet dream and absolute best case scenario. 2-3x is optimistic but realistic
unknowable. first read holloway guide. avg dilution is that something they told you? that’s fucking bullshit. lies lies lies. so that’s you’re first clue about them cash is ok not good or great. good/great for staff 11 yoe would be 220 can’t say on options. ordinal number is meaningless. need percentage. read holloway guide exercise window is 90 days. that’s a legal requirement for ISO. holloway guide 401k with matching is almost unheard of at B so that’s awesome
Does exercise window only apply if I leave the company? I read that you have 90-days to exercise options after leaving or they become NSOs because of laws, but I wasn’t sure about holding options without exercise while still employed by them. I assume that’s fine, that way I could wait until an IPO, acquisition, or some other trading event.
that’s almost correct. one more time holloway guide. while possible its exceptionally rare for the converting type of option you describe yes exercise window means upon separation/termination
7000 ISO's seem low for staff position.
unknowable and it’s 7000 @ 2.75 so that tells you something or at least it should if you understand it
For the love of god, don’t join startups from big cos
Check out the last three Stitch Fix earnings reports (that include two RIFs) and let me know if you still feel that way.
Even if stitch fix is a rocket heading to the middle of the volcano you’re still better off than working for paper money that will never materialize