How do you guys generally compare startup equity against equity from a well-established big tech company? Equity is $200k/year from startup and $50k/year from big tech firm. I’m evaluating offers from both right now and not sure how to assign equity value. See my offers below for comparison. Yoe: 14 Location: SF
For people who have voted for the startup, can you please share your reasons?
No
For me (worked at a few series Ds, lots of friends who went to big name series D+) It's more like a lottery ticket unless the company routinely allows sales on the secondary market or does buybacks. I'd discount the bonus too unless guaranteed given how things have been there last year or two. So $330 vs. $230 + a dream. Or $400 vs. $230 + a dream if the public co has still been paying full bonus.
Super helpful!
80% of the time startup equity is effectively worthless. Optimizing for cash take the big company. If you’ll get better experience at the startup, take it if the base salary alone is enough for you.
That's helpful, thanks for sharing
Big tech. Equity is paper money, and I won't personally like to take a hit on hard cash.
I didn't expect that the discount on startup equity would be so high.
You should treat it as zero
The problem with startup equity is it is usually difficult to turn into actual cash hence why most people treat it as zero/paper money. With Big Tech you can easily convert equity into cash by selling.
Agree with everyone on generally the Big Tech RSUs are liquid financial assets where start up options are paper money. I would generally follow that advice. Something to consider is your conviction in the start up, problem they are solving, leadership team, investors, etc. DYOR - to see if it is an opportunity worth passing or not.
I would only join startup for title and scope. If title is the same, not sure why this startup role is good for your career
Series D should give you director
Yeah something to bring up in the negotiations. What do you think about valuing startup equity?
I would view equity as 0