Rate my early-stage startup offer
Hey everyone, I’ve received an offer to join a pre-seed stage startup and am wondering what you all think about the offer and whether I should negotiate any part of it. The startup: -health tech company with 2 cofounders and I would be the third non-cofounder hire - $500k angel round so far, looking to raise a few mil in Dec/Jan and on track to do so -founders hold vast majority of ownership - Credible and short path to profitability, and founders are serious about trying to exit in a couple years - no starry eyed founder delusions about “changing the world” or unicorn status Me: - TC(pre temporary company-wide pay cut): $83k with 15% target bonus so around $95k - TC w/current pay cut and no bonus: $75k - 3 YOE - management/ tech consultant - tier 2 east coast city The Role and offer: - duties are 50-50 split between owning all marketing, and helping with product management. Startup so wearing many hats - $68k base, .5% equity stake with the claim both of these will be increased for everyone upon Dec fund raise With this salary I’d be making slightly more than the founders which I think is fine because of vastly different risk profiles and ownership stakes. Should I try to negotiate for more equity? More base? Does it seem fair? All thoughts are appreciated!
With stock dilution after the seed round, how will your percentage of ownership increase?
The equity stake is to little
Boy you're cheap labor for someone who is in charge of a certain segment of a company. Even VPs of big companies walk away with at least 1% of equity, and your salary isnt all that great either.
Every startup that starts with - we will get acquired in 2 years, ends up in a coffin. You end up making a subpar product with subpar strategies and zero growth plans. You get outdated in a year and who ever could buy you would much rather build a better tech themselves. You will get acquihired (founders make $1m each and everyone else gets $100k and a regular job) and not acquired. So might want to go for a starry eyed founder’s startup rather.
Outside of the weirdness of someone with only 3 yoe being put in charge of all the marketing, I'd say it's close enough to your current TC that it might be worth the risk. As long as you are sure you can get your old or similar job back if all goes south, if say go for it.