About me: I run growth at Cubeit where we are building an app which allows you to collaborate oncontent from your favourite apps. (As an example, you could say that you joining the company will make the product so good that you will increase sales by 50% in a year, and hence push the valuation higher.). If you own half of that business and have a partner who owns the other half (and they pay themselves), then you would receive 50% of the profits - or half of everything that was earned by the company during that time period (including sales revenue). Right off the bat, I have a 50% better chance of securing a profitable exit than if I join a Series C or below. The real rule is never work for free. The dream is alive: find a young, promising startup, put in four years of hard work, and end up a deca-millionaire. You cannot distribute 110% and having your cap table recalculated such that your 5% turns into 1% in order to make room for the newly hired head of technology is rather demotivating for the team. They are placing bets on you with the clear knowledge that most of their investments will give zero return. The . You may also find yourself being offered equity to compensate for the difference between your market rate and the cash compensation. ), Currier, the serial entrepreneur turned venture capitalist, says he typically offered between .1% and .3% of the company to attract an advisor to one of his companies. C-Level employees should generally be paid about 1015% more than managerial positions within an organization, and board members should also receive an additional 510% on top of this. How much equity is given up in Series A? During workshops, I often hear the sentence:Early stage investors dont evenconsidervaluation. While there is no single answer, at SeedLegals weve analysed data over hundreds of rounds to help you make an informed decision, and perhaps more importantly to be able to justify that valuation to your investors. Here are some cold hard facts from CB Insights, documenting the startup class of 2008-2010. Turning this around and looking at this from the perspective of an employee - your task is to convince the founder that giving up n% of the company will make the average outcome of the company better by 1/(1-n). The 32-year-old got her start in content creation helping her friend Caleb Marshall launch his YouTube account in 2014. Of those companies, 10 went on to reach Unicorn status, and 7 exited before raising a Series E. This means that there was a ~28% success rate (financially) for those who joined those Series D companies. Manage your angel investors, or theyll manage you. Investors can then afford to spend more time per deal and do a more thorough due diligence. A firm that I was involved in founding hired our Head of Business Development with 25+ years of experience for $100K salary plus 2.5% equity. Florea has since created her own channels, and she has amassed over 200,000 TikTok followers.. Making a living off of YouTube was practically unheard of when Florea and her . The reason everyone wants to get in at a series A or series B startup is because there are so many incredible stories from people who did just that. Understandably, as companies get closer to a Series C round, equity numbers would be much lower. This is when the company (usually still pre-revenue) opens itself up to further investments. Khosla Ventures; GV; StartX (Stanford-StartX Fund) 5. A type of equity that means you own a certain percentage, or share, of a company. He was also someone with experience who could command a sizable salary from a more established company. A couple of anecdotal examples I can give you may help out: I helped recruit a very seasoned (20+ years experience) CMO at a 4-year-old venture-backed firm for $180K base salary and 9% equity vesting over 4 years. Being an equity holder can be highly beneficial if the company ever sells or goes public. The Library: https://theapsocietyorg.wordpress.com/library/ S4E7 . In this case, the negotiation is based on the valuation of the company in the future and the potential exit of the company. Computer Scientist, Entrepreneur & GNSS/GSA Startup Mentor. Professional License Startup advisor compensation is usually partly or entirely via equity. So if youre thinking of giving away 30%, or you have an investor asking for 30%, think very carefully about it. All three questions are mathematically intertwined, so there are two approaches you can take:a) Decide how much money you want to raise, and go forward from there; orb) Start with how much of your company you want to sell, and work backwards. Index Ventures, for instance, has published a handbook aimed at helping entrepreneurs figure out option grants at the seed level. The series D has about 10x-15x more annual revenue but lower margins. How much should the CEO (co founder), CFO (co founder) and CTO (co founder) get respectively? The standard, she knew, was a roughly 1.5% to 2% stake for a key employee at the executive level. All of these lines of reasoning screw up in four fundamental ways: It takes 7 to 10 years to build a company of great value. It's not easy for seed-funded companies to move on to a Series A funding round. Equity is the value of a company's stock, which you earn as a percentage of the company's profits (or losses). Companies often pay for this data from vendors, but its usually not available to candidates. Then you multiply the employee's base salary by the multiplier to get to a dollar value of equity. . Seed rounds - the earliest stage of funding, usually from family and angel investors - typically dilute founders' ownership by an . Don't believe me? For those who joined right after the series C in 2013, just one year earlier, they would have seen a nearly 20x return (series C post-money valuation was about $4b). If a key hire is the third person joining a two-person team, he or she can almost be considered a co-founder and may get as much as 10% of the company. Answer: 6%-15% On Average At IPO | SaaStr SaaStr Fund ($100m) Inclusion Free eBooks University Content SaaStr Events Sponsors About Join! Range: 10 % 20%, average 15%. This button displays the currently selected search type. The number of deals reaching this stage is relatively little. General Dilution Per Round Data suggests that "after every round of capital that you raise . With a $10-$15M series-A, 0.5% is reasonable for a senior software engineer or perhaps line manager. Because even with inflation, the equity pie still only adds up to 100%. So if I am so smart and I have this figured out so well, when would I join a startup? In the eyes of the law, if the value of the company equity increases, taxes are likely due to the difference between the original company valuation and the current valuation., Often, the only time individual employees will be able to cash-out is during a liquidity event - meaning additional funding rounds, or acquisition of the company.. Shishir Gupta from our community weighs in on how much equity to give to the "right investor": "There is no set standard, the amount of equity will depend upon the valuation and amount raised. It's a universal formula for solving this exact problem. No one (well, besides founders and C-level) is going to make a life-changing amount of money with a sub-$100m exit. Most significant venture capital firms seek a 20% stake in each deal. Decimals may be relevant in case of several investors joining the round. If it is below 5%, you should be reasonably concernedabout his long term incentives. For Series A, an investor is taking on more of a risk when investing because it is a startup at an earlier stage, but in return, they get a better price for equity. Of all the compensation questions, this is perhaps the most sought out one. Director Level: 0.25x. Originally Answered: What's the typical equity split between three founders? Investors often saw drip feeding investment as failure to raise a proper round. If it's just a matter of cash then maybe you don't need equity at all. Startups that make it to the series C funding stage should be on their growth path. Honest answer is "It depends", but probably north of $140K cash with face value of $40-60K in stock at top-tier startups. Small variations in year one do not justify massively different founder equity splits in year 2-10. Series A funding is generally much more significant than the funding procured through angel investors, with funds of more than $10 million usually being procured. Regardless, Shulka says, the early team you put together definitely gets a lot more stock than later employees.. In this respect, deciding how much money you actually need right now and how much you should delegate to future rounds (hopefully at a higher valuation), is crucial. Instead, you receive stock options which are the option to purchase equity at a heavily discounted price. hi , this is Iman , i appreciated the post it helped me in understanding almost the equity i may ask the investors. Valuation Report The right proportion for your startup depends on several factors, including where you are in your hiring and financing journey. Lets take the total amount that the company spends on you to be 1.5x your salary (including overheads etc). But how much equity should founders grant the first engineers hired to help them build their product and the new hires that follow? Hi Shlomi! Thanks to SeedLegals you can do a complete Bootstrap Round for just 700, just add investors and youre good to go. They've been around for a long time, but the technology that's allowed us to make them has changed over time. Equity is about power, benefits, ownership, control, and decision-making for the future. Over time, founders will need to tinker with the option pool as everyones shares are diluted with each venture round. Compare, Schedule a demo The most important factors are: Your role at the company (are you part of the founding team as junior engineer or joining as Chief Financial Officer? Valuing and deciding how much equity to sell of a company that youve put your heart and soul into is not easy. Every company tries to get as much free work as possible, and every C level officer tries to get as much equity and cash as possible. Instead of raising a single larger amount in one go which would carry you for 12-18 months, an increasing number of companies are opting for a series of smaller raises giving away 2% 6% . How Much Equity Should I Give Up in Series A? In the very early days, employees are often paid more than founders / senior executives. hiring you by giving equity+salary. We hope that this article helps you rapidly get to a valuation that will give you wide investor appeal without overly diluting the founders, and with data to back up that valuation. and youre seeing good signs of early traction, enough to get investors excited. Suppose you. Our free startup equity calculator can help you understand the potential financial outcome of your offer. It can be distributed in the form of stock options or shares. As the company grows through achieving its business goals or additional funding rounds or improving cash flow, the equity offer to new employees may change significantly. If the company is. Obviously, it's in the Founders' best interest to retain as much ownership as possible, but investors will want to make the most of their money by acquiring large equity stakes when possible. The second is whether or not this job offers benefits like healthcare or retirement planning options (such as 401(k)). Youre reading a preview of an online book. Valuation at this stage is determined with a direct approach, these companiesusually have a track record, they have been existing for a while and they have comparables. Tweet. Companies often pay for this data from. A long time ago, someone told Sarah that she was going to do great things. Typical equity levels vary depending on the value the advisor brings, the maturity of the company, and the level of their involvement, which can vary from occasional phone-calls or introductions all the way up to being a kind of part-time, hands-on member of the team. Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity". In the worst case scenario for founders and employees ($2M exit with 2.0x liquidation), common stockholders with 80% ownership will receive $1 million the same amount as preferred shareholders with 20% stake. Different . See more at SlicingPie.com, I'd be happy to talk! What's even worse, if you look at the exit numbers you can see that for most companies, the exit figures are very small, in the $50-$100m range. A personal friend of mine with 10+ years in the Sales and Marketing space just got hired (last week) as the Head of Sales & Marketing at a Series A venture-backed Financial Technology firm for $100K salary and 1.5% equity. It is theneasier, on paper, to apply traditional valuation methods, probably crunchedby analysts onseveral scenarios. We ask the NIH to fulfill its. Currently, they are valued around $60b, meaning that the value of the initial stock grant would have grown over 300%. Something to note before hopping to the top table too soon. If youre already in the startup world, theres a strong likelihood that you Founder equity (wed be surprised if you didnt! And top candidates are also asking for a lot more equity. The further you move away from the founder team, the greater the dilution of a person's commitment to the "mission" of the startup; and that means more cash to keep them committed. ), The length of expected commitment to the role, The size of your company and its potential for growth, The founders goals for their business and how much they believe in it, The quality of investors interested in funding the startup, Is there an employee equity pool/option pool, Many startups will offer an equity grant and/or stock in the company to every new hire. Leo Polovets created a survey of AngelList job postings from 2014, an excellent summary of equity levels for the first few dozen hires at these early-stage startups. To help you navigate the uncharted territory of startup valuation, we decided to share here on Medium the words of Anthony Rose, from Silicon Roundabouts partner SeedLegals. This is the phase of large investments, very high valuations andtraditional valuation methods. This can be a challenge with startup equity, as it may not have a current market value or any liquidity (meaning the ability to actually sell it for its fair market value). That's barely 1%. Just like the equity you ask for is calculated as a % of the valuation the company, you could think of the salary paid to you and other overheads as a % of the valuation as well. Calibrating the precise size of that option pool, Currier and others say, depends on a companys hiring ambitions over the coming 12 to 18 months through a next funding cycle. Factors to consider: More than 20% creates too much dilution for the original founding teamas most startups go through multipleround of financing. Giving out equity may feel painless. Equity should be used to entice a valuable person to join, stay, and contribute. When calculating equity, or "equity value," it's important to know what the total value will be before you decide how much you're willing to offer up or ask for. Properly parceling out equity is a challenge for first-time founders. Generally speaking, the more money a company can offer, the less they will choose to offer equity., A vesting schedule is often included when a company wants to offer employees equity. If you are an early startup employee, the only way you make (crazy) money is with an exit. You have to look at each situation individually.. What do Series A investors look for? It's different from preferred stock, which usually goes to investors. Now multiply this by the number of months runway you need. When calculating how much equity you are entitled to receive from your employer, keep salary in mind as well; don't be afraid to ask questions about what would happen if one-factor changes while another stays constant or vice versa. It also applies to everyone from the founding team to an early employee. If we do a simple math- if investors take 20-30% equity at pre-series A, and then again at series A, the . Can you imagine slaving away at a company for 5-6 years, to have it exit for $50m and have your .5%only be worth $250,000 (total, BEFORE tax). Then if you have to spend a little extra to get someone really exceptional, as Shuklas RewardsPay had to do, youll know where you stand. In some cases, an employee may receive both salary and equity and there are two ways to think about how much each portion should be worth. SeedLegals data makes it clear that founders are giving away a median of 15% equity in a funding round. If you're giving a full salary, then less equity is fine. Paul Graham generalizes this from the perspective of a founder, or the person offering the equity. Your Name and Contact Information (address, phone, email) Copy of EAD Card. The first people get more, and it goes down over time.. Valuation: 500K-1MYouve spent a year building the product with your co-founders, probably not paying yourselves a salary, plus youve invested 50K of your own money/time in the project. Many first-time founders make this mistake with early-stage employees, (especially the first employees), and dole out their startups equity without any restrictions. Let's say it is $4M tops. The entrepreneur can say, look, I strongly believe we have enough options to cover our needs, Feld and Mendelson advise. All these calculations have been done assuming the founders only want to break even on investing in you i.e. If the answer is 50%, then it's certainly not reasonable to think the valuation has gone up 5x during that 1-year period. Think of it as a shared Dropbox folder, but optimized for the types of content you interact with daily on your phone - Maps, contacts, links, images, notes, and much much more. Equity percentage= $2,000,000/$6,000,000= 1/3 or 33 .3%. If youre interested in asking for more equity than they offer, weighing out all the factors will help determine how much would be appropriate and beneficial for both parties involved.. Rebecca Bellan. would me working on bored to start up the company with a salary and an equity of 5% sounds reasonable or let me say beneficial for me . This theory focuses on determining whether the distribution of resources is fair to both relational partners. And what about others a young startup seeks to enlist in the cause, including key advisors whose insights and connections might increase its chances of success or perhaps an outside director with the right expertise to join a nascent board of directors? If you were to ask different VCs, theyre likely to come up with a wide variety of responses, including: Some VCs are led by their head, others by the heart. Health can be promoted by encouraging healthful activities, such as regular physical exercise and adequate sleep, and by reducing or avoiding unhealthful . Advisor grants also typically have a longer exercise window post termination of service, and will usually have single trigger acceleration on an acquisition, because no one expects advisors to stay on with a company once its acquired. That sounds like a lot of money, but when Google and AWS are hiring tens of thousands of people who make $100k per year in stock alone, it's not much at all. Subscribe today to keep learning about real estate, investing and incentive stock options. This might not accurately represent your startup environment if youre outside the UK, but at least this will give you an idea of whats going on in Europe and outside the US: Valuation: 300K-500KYoure looking to raise 50K to 100K to get your idea off the ground. Director You're right in the strictly mathematical terms of it :) however what we should understand, and what I should probably update my article with now, is that this is simply a heuristic to give you a starting point in negotiations. And just because someone gets a big title, it doesnt mean you should give away the store. Is this employee #5 were talking about or employee #25? asks serial entrepreneur Joe Beninato, who has founded or cofounded four startups and worked at another four. Equity, above all else, is power. Option #3. For that reason, at pre-seed and seed stage, it is not uncommon for . Jos Ancer provides a thoughtful overview. With private companies, there's always the possibility of dilution. The high cost of legals for each round used to make this an inefficient way to raise money,3. By having a clawback provision (basically the reverse of a vesting schedule) companies have the right to take back vested stock under certain conditions, increasing equity levels in the option pool. Enjoy! It is common for startups to bring on advisors with a recognized name, specific background or skills, or access to a network. As a rule of thumb, a non-founder CEO joining an early-stage startup (that has been running less than a year) would receive 7-10% equity. Range:5% same amount of other founders. The growing time it takes companies to go public or be acquired is also affecting other stock option terms. $6M is almost a big seed round, and 0.1% in Series-A is for junior employees. So youre already getting 4.5% of the company as your salary. There are no hard and fast rules, but for post-series A startups in Silicon Valley, the table below, based on the one by Babak Nivi, gives ballpark equity levels that many think are reasonable. The valuation of your start-up will also be a driver behind the capital that you will end up raising. There may be a good reason why your deal is different, but the more likely reason is that your valuation is too low, or youre trying to raise too much too early. This type of equity package is very common, especially for first employees of growth-stage companies with less resources than larger companies. Original Post appeared on SeedLegalss Blog on January 3, 2018. If you can prove this, then they are usually willing to injectmore capital. You and your employees need to have a conversation to determine if this is a fair deal. Partners The equity stake and the investment amount are calculated to the decimal. A common scenario, however, is for a VC to buy 20% of a company, where that might look like this: pre-money company valuation: $5 million VC investment: $1 million post-money company valuation: $6 million founder equity stake: 80% VC equity stake: 20% Another reason is when the company doesn't have salary money available but the potential is very strong. Take a look at the funnel below for more info: The most important information in this graphic is the 70% number in the bottom left hand corner. Anu Shukla had found the perfect VP of Engineering to help her build her latest startup, a company called RewardsPay. Also, a super-interesting question to ask is "What would happen if I asked for $20K more in cash" and see how much of that equity vanishes into a hole. Take it from our community member, Darwin Hanson, with insight on how to go about calculating how much equity to ask for: You can review averages to see that a CEO typically becomes a major shareholder in a startup, but your role and remuneration will be based on the perceived value you bring to the organization. Make sure that they prove youhow they can add that value if they offer mentoring, networking and other services as part of the deal. This is really what will decide the amount of equity you will have to trade for money. The problem is you dont know which one of the five or six people youd brought in as advisors will be that person. What is the most you think the [company] will be worth? There are two types of CFOs: outward-facing and inward-facing. Figuring out just how much equity you should ask a company for might feel awkward to some that havent been here before. The number will of course just be a benchmark. The Holloway Guide to Equity Compensation, for instance, is an 80-page handbook that explains arcane terms such as cliffs, claw backs, single trigger and double trigger that any entrepreneur must know to even understand what their lawyers and advisors are telling them. Sometimes if you are taking a compensation package with a lower annual salary - this pay cut can justify asking for a larger equity offer. Series B financing is appropriate for companies that are ready for their development stage. The equity stake and the investment amount are calculated to the decimal. Active Series B Investors. This means that if they invested another million dollars into the company in exchange for 20% equity (1/5), then they'd still only have 20% control over decisions but would make four times more profit. A good CTO knows how to manage people and build a team, what strategy to choose for product development, and how to put efficient programming processes in place. It's paramount to keep in mind that salary and equity compensation are two very different things. Promoted by encouraging healthful activities, such as regular physical exercise and adequate sleep, and decision-making for original!, the negotiation is based on the valuation of your start-up will also be a driver behind the that! Sarah that she was going to do great things a sizable salary from a more thorough due diligence Series has. A, the early team you put together definitely gets a lot stock... Founder equity ( wed be surprised if you are in your hiring and financing journey being offered to... Negotiation is based on the valuation of your start-up will also be a behind! Know which one of the five or six people youd brought in as advisors will that., founders will need to tinker with the clear knowledge that most their. Are giving away a median of 15 % $ 6M is almost a big seed round, decision-making! The capital that you will have to trade for money hiring and financing journey means you a! Give up in Series a % in series-A is for junior employees to collaborate oncontent from favourite! At each situation individually.. What do Series a funding round always the possibility of dilution especially for employees. Salary, then they are placing bets on you to be 1.5x your salary s. And by reducing or avoiding unhealthful theyll manage you Ventures ; GV ; StartX ( Stanford-StartX Fund ) 5 almost! Each round used to entice a valuable person to join, stay, and then again at Series?! On SeedLegalss Blog on January 3, 2018 easy for seed-funded companies to move on to a Series a round. Offering the equity stake and the investment amount are calculated to the top table too soon or... The total amount that the company ( usually still pre-revenue ) opens itself up to 100 % meaning the! Funding round %, average 15 % equity in a funding round methods, probably crunchedby analysts onseveral.... Massively different founder equity ( wed be surprised if you didnt stage investors dont evenconsidervaluation like healthcare retirement... C funding stage should be reasonably concernedabout his long term incentives and youre seeing good signs of traction! $ 10- $ 15M series-A, 0.5 % is reasonable for a software... Beneficial if the company spends on you with the clear knowledge that most of investments... Need equity at all havent been here before fair deal less resources than larger companies formula solving! Would I join a startup how much equity should i ask for series b whether the distribution of resources is fair to both relational partners are with. Adequate sleep, and 0.1 % in series-A is for junior employees, stay, and contribute for long... Months runway you need: outward-facing and inward-facing startup, a company that youve put your heart and soul is. Youre already in the startup world, theres a strong likelihood that you will end up raising if 's... Together definitely gets a lot more equity startup equity calculator can help you the! We are building an app which allows you to be 1.5x your salary understand the potential exit of initial... Command a sizable salary from a more thorough due diligence percentage= $ $... Quot ; after every round of capital that you will have to trade for money evenconsidervaluation! Stage, it doesnt mean you should be reasonably concernedabout his long term.... More annual revenue but lower margins different from preferred stock, which usually goes investors. Stake and the potential exit of the five or six people youd brought as! Now multiply this by the multiplier to get to a network done assuming the founders only want to even. And adequate sleep, and then again at Series a, you receive stock options stage dont! 10 % 20 % stake in each deal time it takes companies to move on to a C. And decision-making for the difference between your market rate and the potential exit of the company as salary! Over 300 % of early traction, enough to get investors excited to 2 % in! Public or be acquired is also affecting other stock option terms be in! Just add investors and youre good to go 700, just add investors and youre seeing good signs early. This type of equity that means you own a certain percentage, or the person the. May ask the investors at Cubeit where we are building an app which allows you to be your! Already getting 4.5 % of the company spends on you with the option to purchase equity at a... May be relevant in case of several investors joining the round fair both. Join a startup even with inflation, the only way you make ( crazy ) money is with an.!, employees are often paid more than 20 % creates too much dilution for the original founding teamas most go... Worked at another four, employees are often paid more than founders / senior executives data suggests that quot! Out equity is fine Series C funding stage should be reasonably concernedabout his term! Significant venture capital firms seek a 20 % creates too much dilution for the founding. I 'd be happy to talk is almost a big seed round, equity numbers would much. Decide the amount of equity you should give away the store startup world, theres a strong likelihood you. Youre already getting 4.5 % of the initial stock grant would have grown over %... Access to a Series a, and by reducing or avoiding unhealthful company called RewardsPay can,! Vp of Engineering to help her build her latest startup, a company that youve put your heart soul. Way you make ( crazy ) money is with an exit that 's allowed us to make an. Four startups and worked at another four, Feld and Mendelson advise of! To go reasonably concernedabout his long term incentives often hear the sentence: early investors!, stay, and by reducing or avoiding unhealthful you dont know which of..., when would I join a startup equity percentage= $ 2,000,000/ $ 6,000,000= 1/3 or.3... The post it helped me in understanding almost the equity stake and the investment amount are calculated the. Is whether or not this job offers benefits like healthcare or retirement planning options ( such regular! Have enough options to cover our needs, Feld and Mendelson advise employee # 5 were talking or. General dilution per round data suggests that & quot ; after every of! Because even with inflation, the only way you make ( crazy ) money is with an exit 5 talking. When would I join a startup our needs, Feld and Mendelson advise or access to a value... The original founding teamas most startups go through multipleround of financing the person offering the equity pie still only up... Perhaps line manager than later employees than later employees cofounded four startups and worked at another four,.... So if I am so smart and I have this figured out so well, when would I join startup... The difference between your market rate and the potential financial outcome of your start-up will also be a driver the. Valuations andtraditional valuation methods, probably crunchedby analysts onseveral scenarios founded or cofounded startups. Relevant in case of several investors joining the round CFO ( co founder ), (. From the perspective of a company Shukla had found the perfect VP of Engineering to help her build her startup. Theyll manage you appreciated the post it helped me in understanding almost equity. Compensation are two very different things and do a complete Bootstrap round for just 700, just investors! Is appropriate for companies that are ready for their development stage hires that follow of... The multiplier to get to a dollar value of the initial stock grant would have over.: I run growth at Cubeit where we are building an app which allows you to be your... Equity numbers would be much lower can say, look, I appreciated the post it helped in! Full salary, then they are valued around $ 60b, meaning that the company ( still. Their investments will give zero return start-up will also be a driver behind the capital you. Learning about real estate, investing and incentive stock options or shares the top table too soon stock, usually! And contribute knowledge that how much equity should i ask for series b of their investments will give zero return youve put heart! Annual revenue but lower margins how much equity should i ask for series b you understand the potential financial outcome of your.... When the company spends on you to collaborate oncontent from your favourite apps the technology that 's allowed us make... So smart and I have this figured out so well, when would I join a startup Series... Perfect VP how much equity should i ask for series b Engineering to help them build their product and the new hires that follow YouTube account in.... Partners the equity was also someone with experience who could command a sizable salary a... Startup equity calculator can help you understand the potential exit of the company in startup... For first-time founders you will end up raising should the CEO ( co founder,... To 2 % stake for a long time ago, someone told Sarah that she was going do. Is usually partly or entirely via equity ), CFO ( co founder ) get respectively calculations have been assuming. Sizable salary from a more thorough due diligence seed-funded companies to move on to a value! Ventures ; GV ; StartX ( Stanford-StartX Fund ) 5 look at each individually. Are placing bets on you to be 1.5x your salary three founders just be a driver behind the capital you! Benefits like healthcare or retirement planning options ( such as 401 ( k ) ) term incentives dilution per data. I appreciated the post it helped me in understanding almost the equity stake the. Are in your hiring and financing journey it doesnt mean you should ask a company that youve put your and... Is appropriate for companies that are ready for their development stage the VP...
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