would you rather join: 1) - growth mode startup backed by 8VC, SF based - not profitable yet - 2 rounds of funding - 0.5-1% of company shares given in offer 2) - profitable startup, toronto based - profitable, one round of funding over 4 years ago - stock options, 50% discount and 80k limit on total (20k/yr for 4 years) thanks!
Assuming you have same base pay for both options (if not, you should reconsider both options) , you cannot evaluate just on basis of profitability, instead you should look at profit margins, considering - A high profit margin startup might not be profitable because it may be reinvesting all its profit into itself to grow. - The faster the startup grows, the faster your stocks grow. ( so, you should ask for # of stock units written on your offer not the worth)
Thanks for the insight. What about considering where the company is based? SF vs Toronto, I guess SF has a larger talent pool and they’re looking to expand their Toronto office, which is a great opportunity for me to grow if I join them (in their Toronto office).
Apart from personal preferences and visa stuff, these are good points to consider- 1. Kind of projects in Toronto office. ( Will you be first class citizen or not) 2. Reviews from people already in Toronto office ( if Toronto not HQ, you might miss on important opportunities) 3. Switching cost- are there good options if you wanna switch to another company/team ?
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Are you sure option 1 is shares instead of options? Shares that vest before a liquidity event have tax implications, which is why ISOs are more popular. I have never seen a company give 0.5% not in options.