These companies want to offer me <1% equity/options, but I can get $1.2m stock at public companies. They’d have to hit over $200m valuation to break even (given dilution etc). I’m a very experienced full stack engineer that can wear every hat. Companies have $12m+ funding.
Absolutely not in this market. If you are engineer #1-5, at least ask for 3-5% or tell them to f'off.
They screwing over you bro.
What level are you at Google? L6?
And your % is likely to be in common shares with preferences to investors. So if there are $200M in preferences and company gets bought for $200M you would get zero because there wouldn’t be any leftover value for common shares.
The reality is that startups rely on people who are fucking idiots to take these senior positions. Virtually ANY public company will statistically pay you better and give you better work life balance. For the juniors who have no or little experience it’s just “this is what you have to do to break into the industry if you can’t get a coveted junior role at a public company”. You only take these roles when you have 1) no other choice or 2) literally don’t care about money anymore because you’re independently wealthy and are passionate about the company’s mission. It’s ALWAYS a pay loss, and a very substantial one. Even in the event the company does IPO or get purchased, there’s nothing saying the investors and executives won’t take a lower price so that they can cash out and leave you getting ass blasted with valueless stock or stock that is worth 1/4 of what they told you it was. I’ve seen people hired on $800k grants, company IPOs, by the time their six month hold expires the grant was worth $150k. And 95% of the startups will also cut your base pay because “you’ll be rich anyway if we make it”. Oh, and 95% of them fail and you get nothing, no severance, literally nothing your paycheck just stops coming, good day, sir. You have to be a total moron to accept that. If it’s late stage, there’s no base pay cut, and they can show you real revenue AND give you at least an equivalent stock offering (dollar for dollar in today’s value), it’s still a heavy risk, but the early stage folks are all fucking nuts or fucking stupid.
1-5% depending. definitely not <1%
Why not invest in crypto and see money hitting your account like drum
It’s typically going to be a statistically money-losing proposition, unless you’re wanted by them so much that they’re basically making you a “founder”. If they have 12M funding, valued at what, 50M? Even offering you 5% (ie CTO role) would be a break even risk (same expected value, higher variance). You have to ask yourself: will this propel your career, for other reasons? Work on tech you don’t get to do at your current gig? Be in a decision-making role that will help you jump levels after a year or two? Will you meet VCs who might invest in *your* thing when this inevitably fails? Are you bored to death right now? Then go for it. But you will be leaving money behind.
btw, $200m is a failure. if that’s all they hit you won’t get a cent. $12m funding is already $120m valuation, minimum
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