Seed stage startup 50M valuation 13 million raised. Initial offer, how much can I go up in current climate? Current TC: 235 #equity #startup #offer #offers
That equity looks like peanuts, you should be asking for a $500K package over 4 years.
Ah makes sense its 40k per yr currently
Since it’s seed stage, be prepared to expect 50-80% dilution on equity, plus there’s also the risk it just doesn’t work out, you should factor that into the premium you expect on equity
Yoe?
2
May I ask why you would like to lower your TC? Is the startup doing things you are really interested in?
Sometimes you go backwards to go forwards. It could be a good move. Odds are against them though they’ll get great experience even if it fails.
Hate toxicity in current team. Bs work. Plus its just the opening offer, for sure I'll push for higher.
That seems like such a lowball 40k series A equity is worthless , you can get 3X that in RSU working for big tech Also see when the round was raise if it was during boom time (2020-22) expect next rounds to be 50% cut
I would ask for 175k in equity each year tbh. At the seed stage, the equity transferring to anything is so small that the current 40k doesnt seem worth the risk in anyway shape or form.
40K is a joke. Push for more equity as series A companies have very little chance to make it till the end.
Equity will probably be worthless, so don’t focus on it.
Kind of surprised by all the replies here. The math on available equity comp is pretty simple. They probably have only 10-15% in their incentive pool and this pool should last them until 30-50 employees, which means that the equity offer is fine. If you don’t believe the company will be successful then obviously don’t join a seed stage startup. Seed stage startups should be joined only if you are irrationally optimistic about the prospect (I mean this positively and unironically).
I'd ask for $40K in scratchers from 7-11. Probably more valuable and won't be diluted during the next funding round