Berkeley CSUA MOTD:2012:December:21 Friday <Thursday>
Berkeley CSUA MOTD
2012/12/21-2013/1/24 [Uncategorized] UID:54566 Activity:nil
12/21   Is it just my imagination or iOS 6 drains battery a lot more than 5?
2012/12/21-2013/1/24 [Transportation/Car, Reference/RealEstate] UID:54567 Activity:nil
12/21   Is it possible to use my Fastrak on a rental car?
        \_ Don't know if you're supposed to, but I think it works under normal
           situation (i.e. you're not speeding, your windshield doesn't block
           the signal, etc.)  The problem is that if the reception is bad and
           the toll tag doesn't beep, the booth will take a picture of your
           rental's license plate and fine the rental company because the
           vehicle is in violation.  Then the rental company will make you
           pay the toll plus the penalty.
        \_ I have done it plenty of times. -ausman
2012/12/21-2013/1/24 [Industry/Startup, Finance/Investment] UID:54568 Activity:nil
        Yahooers in Sunnyvale don't seem to average 170K/year.
        \_ Googlers average $104k/yr? Uh huh.
           \_ what is it suppose to be?
                 Google Sr. Software Engineer in Sunnyvale averages $193k in total pay,
                 according to Glassdoor. This is about right. Perhaps they mean all
                 Googlers, including Janitors and Bus Drivers.
                 Google Sr. Software Engineer in Sunnyvale averages $193k in
                 total pay, according to Glassdoor. This is about right.
                 Perhaps they mean all Googlers, including Janitors and Bus
                 \_ Gee, I'm a Principal SW Engineer at a startup and I'm
                    making only $128k/yr.
                    \_ Sounds like you're probably relatively young, then.  A
                       lot of this also depends on how much experience you.
                       If you have two employees with identical job titles, the
                       one with 15 years of experience is going to be making
                       much more than the one with 7 (even when they start
                       passing out senior-sounding titles to the younger
                    \_ How much equity are you getting? That might be worth
                       even more than your salary. I am very senior and
                       working at a startup and making about the same. But
                       also getting lots of equity.
                       \_ When I joined 6 years ago, I got 0.25% ISO which has
                          been diluted to 0.09% at present.  Combining with
                          the bonuses throughout the years, my total ISO now is
                          0.16%.  -- PP, class of '93
                          \_ That's not a lot of equity.  If you're class of
                             '93, you should have enough experience to command
                             a higher salary than that.  .16 isn't a generous
                             enough grant to make up for it.  That's "junior
                             engineer hired after round C" equity.  The next
                             time you switch jobs, ask for a hell of a lot more
                             money (like another $30-40k).
                          \_ Depends on the companies valuation. Any idea
                             what it is worth? 0.16% of $100M isn't that great.
                             0.16% of $1B is awesome. -PP
                             0.16% of $1B is awesome.
                             \_ The equity percentages you should expect are
                                based on what stage you join the company, and
                                how senior you are.  The valuation matters
                                when you cash in, but it doesn't really
                                provide any guidance for evaluating an offer.
                                And to your point, it's even *worse* if the
                                company is worth a billion, because he got
                                ripped off even more.
                                \_ In what world is an option on $160k of
                                   stock worth more than an option on $1.6M?
                                   \_ What I'm saying is that the percent
                                      equity you should expect is independent
                                      of the company's valuation.  If a more
                                      appropriate amount of equity would be
                                      about .5%, then his poor initial
                                      negotiation caused him to miss out on
                                      even more money if the company sells for
                                      one billion than if it sells for $100
                                      million.  I'm obviously not saying .16%
                                      of $100 million is more than .16% of
                                      $1 billion.
                                      \_ I think that you are incorrect. So
                                         does Fred Wilson up there, but then
                                         again he would think that, right? Do
                                         you have a handy dandy chart that tells
                                         people how much equity they should
                                         ask for given the funding round the
                                         company is at and the employees level?
                                         Absent that, most of this is just talk.
                                         \_ At this point, I'm pretty sure I'm
                                            being trolled.  Or you deserve what
                                            you (don't) get.  Want to find
                                            some guidance?  Google it yourself.
                                            You might want to look at typical
                                            capitalization tables while you're
                                            at it.
                                            \_ In other words, you are talking
                                               out your ass and don't want to
                                               admit being caught at it. Cap
                                               tables have nothing to do with
                                               what rank and file (or even
                                               executive) employees should get
                                               in equity compensation.
                                               \_ Oookay, Mr. I Can't Google:
                                                  Scroll down to the second
                                                  table, that looks about
                                                  right for round A.  And your
                                                  take on capitalization tables
                                                  is just precious.
                                                  \_ From your own link:
                                                     "The one number you should
                                                      know about your equity
                                                      grant is the percent of
                                                      the company you are being
                                                      granted (in options,
                                                      shares, whatever – it
                                                      doesn’t matter – just
                                                      the % matters)." Oddly
                                                      enough, this guy doesn't
                                                      seem to care much about
                                                      the cap table either.
                                                      \_ The cap table
                                                         describes the larger
                                                         ecosystem, of which
                                                         your option grant is
                                                         a small part.  It is
                                                         not necessary to
                                                         evaluate an offer,
                                                         neither is it
                                                         unrelated.  I directed
                                                         your attention to
                                                         *one table* on this
                                                         page.  I don't care
                                                         about the rest of it.
                                                         If he says "only the
                                                         percent equity
                                                         matters", that's a
                                                         bit naive, as it
                                                         ignores the
                                                         preference the VCs
                                                         have taken.  It was
                                                         true 15 years ago, but
                                                         not now.
                                                         \_ It was the same then
                                                            but they accoplish-
                                                            this via other, more
                                                            nefarious means. At
                                                            least this is up
                                                   \_ What should it be for
                                                      round B, round C, etc?
                                                      Do you have any insight?
        This is actually quite useful, thanks. _/
        I guess I did all right then, since
        I got this much in a company that
        has just completed it's D round -!PP
                       \_ The game has changed.  You might want to read up on
                          preference in startup term sheets, and why it means
                          that your (common) equity probably won't be worth
                          much (if anything), even if someone does buy your
                          startup.  Example: in the $500 million purchase of
                          Xen by Citrix, the VCs split 380 milllion of the
                          purchase amount, while the rank and file were left
                          splitting $120 million.  So if you're sitting there
                          thinking "I've got .5% equity" probably don't.
                          And when the VCs preference (not their investment)
                          covers more than the purchase <DEAD><DEAD>mon
                          shareholders get nothing.  Working for equity at a
                          startup today is *not* like the 90s.
                          \_ Yeah, I had to learn about this stuff before I
                             accpeted the offer. I am ready to take the risk
                             that I get nothing if the value of the company
                             does not increase. It is in general a bad idea
                             to get a job for a company that is failing, but
                             especially bad if much of your compensation is
                             in equity. I assume that I get 0.5% of the value
                             added *after* I join. Does that seem about right
                             to you? Thanks for the advice.
                             \_ Preference describes the extent to which the
                                preferred shareholders (the VCs) get paid more
                                than the common shareholders (the employees
                                who got options) if and when the place sells.
                                It has nothing to do with whether the
                                valuation is going up or down, though the
                                preference is likely to increase (get worse
                                for you) across a down round (a funding round
                                where the valuation is lower than the previous
                                round's valuation).  However, if you have
                                onerous preference conditions in round A,
                                they'll still be there after round B, even if
                                B is an up round.  In fact, the VCs who come
                                in in round B will get that same preference
                                over you, most likely.
                                The amount of equity you have is the size of
                                your grant divided by the number of shares
                                outstanding.  You should be able to find out
                                both those numbers to evaulate an offer.  Run
                                from any company that won't tell you the
                                shares outstanding.  The percent of equity you
                                have at the time of your offer is *not*
                                guaranteed across time, and *will* go down.
                                Additional shares will get created during a
                                funding round (dilution), which means you own
                                less of the company.  You should expect an
                                additional grant at that time to compensate,
                                but they're unlikely to give you enough to
                                keep you whole.
                                And even if they did, preference means you
                                probably don't really have what you think you
                                \_ Here is Fred Wilson's take on the topic.
                                   I think he does a better job of explaining
                                   it than you did.
Berkeley CSUA MOTD:2012:December:21 Friday <Thursday>