reposting as original post got lost. I got an offer from a well funded series C start up. What do you think about the offer? Since start up is small that i can be tracked back, I am not naming them here to protect my identity. first offer: role: Principal PM base: 240K joining bonus: 70K (35K at joining and 35K after first year) stock options: 25K stock options (0.08%) vesting over 4 years. revised offer: they increased base and joining bonus. base: $245K joining bonus: $90K ($45K at joining and $45K after first year) stock options: 25K stock options (0.08%) vesting over 4 years. total cash for first two years: $290K per year then $245K for subsequent years. I am not counting stock options for decision making but using that as an upward incentive if start up turns out a succesfull one. current TC: $250K (base + RSUs), recently promoted. experience: 5+ years as PM and 12+ total Offer is for a start up so there are lots of unknown. However, I feel strong that I will be able to leverage my PM as well non-PM experience and domain knowledge at the start up. What are your thoughts on this offer, expected wlb at start up (40-45 hours per week in current job), and any risks that I should consider for the final decision?
If that’s what they’re offering you as a PM it means the company is going to be broke within three years.
What is the maths behind your projection?
What is the financial status of the startup? How much runway(cash reserves) do they still have before requiring another round of funding? Are they growing year over year in revenues and employee count? What is their percentage growth?
They have funds to run the company for next 18-24 months before going for next funding. Yes, they are growing in revenue and employee count.
Does this startup have their office in Kirkland? ;)
No, they are located in Seattle.
For those who moved from Amazon or FAANG to start up, how has been (was) your experience?
Generally a risky move but you can always boomerang to Amazon which is a safety net for folks. Startups are not as rosy as they look and the ones that has the exponential upside are extremely rare. I would try to avoid confirmation bias and enter the startup world with zero expectations on the paper money.
Thanks. Agree to go with zero expectations on the paper money. And this makes decision harder as the cash component cannot match FAANG TC.
Equity seems low
How much do you think is reasonable?
Would like to hear from those who made similar moves. I know that not all will face the same experience but looking for broader feedback from who joined start ups from FAANG.
Series C with < 2 year runway seems risky!
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If your base covers 80% of your TC at Amazon then this is a good comp. I would disregard shares because stocks from startup are worthless for most of them.
If disregards their stocks completely then why to just take it if base covers only 80%? Will one be not losing 20% over Amazon? Do you value their stocks at 20% of Amazon TC?
@Seattle6 She is saying for purposes of making your decision from a financial standpoint, assume the startup will fail and the stock will be worthless. Otherwise that’s good TC from a startup, might be fun.