9/9 I'm joining a startup that's going through their 3rd round of VC
funding and there's already about 100 employees. What should I
expect in terms of # of shares? What is common? And also, is it
ok for me to ask how many shares outstanding they have? E.g. if
they have 100 million shares and I get 10K, and the company is
bought out for $400 million, then it's not worth it for me.
\_ # of shares varies a lot. depends on your position (peon vs VP).
depends on whether you're taking a salary cut too. they shouldn't
have any problem telling you # of outstanding shares but guess
about how many shares you think they'll have when they IPO/get
acquired -oj
\_ if you can rack up around $500k then it's worth it.
\_ Yes, as the above asy, you're totally in the right to ask how many
shares are outstanding. I'd rather have 10 shares of 100 than
1 million of 500 billion. Without this knowledge, the # of shares
you're offered is meaningless. It lacks context. As far as what
you should expect, well that not only depends on your title, but
how well you negotiate. Remember, there are absolutely no standards
regarding this stuff. Don't let them give you any BS about standard
average wages or # of shares or anything like that. It's total BS.
You'll get what you negotiate for. Don't work for less than you're
willing to work for. Remember this is still an employees' market.
Stick it to them while you can, bc later after they import a bunch
of foreign fucks, you'll be screwed. Get it while it's good.
\_ Thanks. I know that the later you join the less you get. That's
why I mentioned 3rd round of funding and 100 employees. So there
is no standard for this stuff eh? I should just flat out ask
them, "hey how much is this worth if we get bought out at $X
million dollars?"
\_ Not exactly like that but you need the numbers to do your
own calculations. As an employer, I'd expect you can figure
out how to use a 4 function calculator. The more questions
you ask, the more they're aware you're not going to be
easily taken for a ride. One thing though and this is the
hard part: try not to squeeze them for every last penny.
Give a little at the end if you don't want any bad feelings
for later if there's more stock, raises, or other bonuses
going out. Also, work environment is really important for
many folks. For me, I'd never work at a place with a suit
n tie dress code and that didn't let me come in after lunch.
But that's just me. I highly suggest writing down on paper
with real ink exactly what you want from them and the
minimum you're willing to accept in various combinations.
If they don't hit your minimum mark, hold firm, don't take
it. You'll be miserable if you do. Some simple stand firm
paper/ink negotiating has always gotten me pretty close to
my desires rather than my minimums. Getting other offers
is always a good idea too. Try not to fall into the,
"Well, how much are you looking for?" trap. Ask what
the hiring range is in response but don't be rude. Never,
ever, but never be rude, no matter what. Good luck. (the
ink/paper numbers are for yourself. don't tell them the
figures.)
\_ A startup that is at its 3rd round of VC funding is fucked
and isn't going to go anywhere. Don't rely on your options being
worth anything, ever, so don't worry about it. |