Thinking of joining startup
Background: Im a full stack react/node developer, 3+ YOE. My current contract position in Los Angeles is ending in the next couple of months, current salary is at 130k. Got an offer at an early stage startup TC: 115K + 0.5% equity + benefits. I actually really like the product the company is building. While looking for new opportunities I notice myself staying away from a lot of companies because im just not interested in what ill be building. One of my long term goals is to one day start a business of my own. About to start negotiations with them, Im not sure how much they can come up if any. My biggest question is if its worth taking a paycut for the experience thats to be gained with such a young company?
Your math is wrong. Undiluted it would be worth $500k. Diluted more like $300k. Either way it isn’t work it compared to what he could make at fang. The only way this would be worth it is if you think the founding team and/or product are really good and you want to learn a startup first hand
He fixed it from .05% to .5%. but agreed
.05% equity? Did you add an extra zero? Definitely don't take that .
He’s only got 3YOE. How much of the company should he get?!
At least enough to make up for the lower salary he would be taking. So in this scenario if they have an IPO in 5 years and they're worth 100 million, he gets 50k, meanwhile he's been earning 15k less every year