Early stage startup compensation?

Uber
tigershrof

Go to company page Uber

tigershrof
May 18, 2019 6 Comments

Expecting an offer from a very early stage startup with under 40 employees soon. The startup is a llc so they say we might give profit sharing units as a part of comp.

Anyone has any advise what is recommended here? The startup may not see an exit until 4-6 years or so or even longer depending upon circumstances.

How do I evaluate an offer like that?

Sorry can’t give any further details at the moment but I would appreciate if anyone can give a basic example here stating if a company raised 200million in funds.

Thank you

comments

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TOP 6 Comments
  • FIN / Eng
    AEAU42

    FIN Eng

    AEAU42
    I’ve never heard of an LLC VC funded startup. Almost always it would be a C Corp and you would get equity.

    So I would definitely ask them what’s up with the unusual structure. You also talk about an exit in 4-6 years, but if you only have a profit share agreement and don’t actually own stock would you even get anything in an exit?
    May 18, 2019 3
    • FIN / Eng
      AEAU42

      FIN Eng

      AEAU42
      Yeah just sounds like some red flags, if there’s not a really good reason that it’s structured this way I would avoid it. YMMV.
      May 18, 2019
    • Uber
      tigershrof

      Go to company page Uber

      tigershrof
      OP
      Thanks
      May 18, 2019
  • Nvidia
    samelove

    Go to company page Nvidia

    samelove
    Would you like to sweat daily at your standing desk?
    May 18, 2019 0
  • Amgen
    Fin4eng

    Go to company page Amgen

    Fin4eng
    Sounds like a REIT or partnership. Will never go public and count TC just as base, bonus and possible profitshare.
    May 19, 2019 0