What makes a seed startup worth it?

Apr 11 101 Comments

I don't have specific numbers as I haven't talked to the startup yet. Just looking from the outside curious what would make it worth joining.

Seed startup
Raised ~10MM
Tier 1 Investors like a16z
Potential Software Engineer role base ~200k
What % equity would be good for less than 10 employees.
Founders had a previous successful exit through acquisition.

Current TC ~400k
YOE 10

#equity #startup

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TOP 101 Comments
  • New
    PzeP63

    New

    PzeP63
    What does DoorDash pay you as a base?
    Apr 11 9
  • New
    BURM56

    New

    BURM56
    It’ll probably be something like 0.25%, with a value based on series A at $100M or something so they can say you’re getting $250K of options. But I only have experience jointing one startup within first 10 employees, but coming in pretty senior, and being given under 1%.

    TC ~$300k
    YoE 15+
    Apr 11 15
    • Google
      nothing00

      Go to company page Google

      nothing00
      Ha, run. If they are still seed after 2 years, you should not even think.
      Apr 13
    • .25% is on the high side with that backing. VP of engineering would be 1%. The math on valuation is worthless and your expected comp will never compare with staying at a big company. You're taking a risk that might make you rich but more likely isn't worth anything.
      Apr 18
  • GoDaddy
    MJeG05

    Go to company page GoDaddy

    MJeG05
    Not sure if the shares will be worth anything. Might be risky. They could dilute you at anytime, and you have no defense.

    Focus on salary
    Apr 11 3
  • Google
    lyTV21

    Go to company page Google

    lyTV21
    I wouldn't join a high risk adventure unless I can meaningfully influence its direction. If you can meaningfully influence it, good or bad, you own it, no complaints. Otherwise, you're just at the mercy of some other potentially clueless fellows.
    Apr 12 0
  • Google
    xamf25

    Go to company page Google

    xamf25
    Unless you are not concerned about money and are going purely for the experience, then startups are not for you. Financial exits and outcomes are completely out of your control, so don't make your decision based on that.
    Apr 12 5
    • OP
      Yea you're right. Giving up guaranteed $$ for the next 5/6 years for a 3% exit probability sounds ultra risky strictly from comp perspective
      Apr 12
    • Meta
      redshrtguy

      Go to company page Meta

      redshrtguy
      True, there's about a 77% chance you're trading your equity grants for the next several years for an eventual email to the effect of: we had a great run, you all are great, our product is killer but the world wasn't ready for us, this isn't the end but the beginning, feel free to reach out if your in town as I owe each of you a beer for all your hard work and sacrifice... From the founder without ever cashing a cent from your shares or seeing the next round of funding come through.

      But that being said, if you truly believe in the product, there's only one way to get in on the ground floor of the next unicorn and that's by taking that torturous probability ladder because note, the probabilities reset at each wrung on the way.
      Apr 12