Negotiate your salary and equity package at a startup?

To negotiate your salary and equity package at a startup: Research: Understand industry standards and the startup’s financial health. Highlight Value: Showcase your skills, experience, and the value you bring. Set Expectations: Clearly state your salary expectations, backed by market data. Equity Understanding: Discuss equity, considering the company’s valuation and growth potential. Vesting and Dilution: Understand vesting schedules and potential dilution. Be Flexible: Be open to creative solutions like performance-based milestones. Align Vision: Show enthusiasm for the startup’s mission. Seek Clarity: Ensure you understand all terms and seek legal advice if necessary.

A tarefa é sempre difícil, mas se temos dados, ela fica bem mais fácil, já que antes de entrar em qualquer negocia??o, entender o seu valor de mercado é crucial. Para isso, recomendo uma pesquisa minuciosa, que n?o deve ser limitada apenas a números salariais médios, através de plataformas como Glassdoor, LinkedIn Salary, salario.com.br, dentre outras que tenha, melhores dados de seu país. Também use e abuso de relatórios do mercado específico para a sua fun??o e nível de experiência e, por fim, converse com colegas e mentores no ecossistema de startups. Um valor realista e fundamentado n?o só te dará confian?a, mas maior vontade de estar na empresa que escolheu.

When negotiating salary and equity at a startup, research market standards for similar roles and company stages. Highlight your value proposition, skills, and experience. Discuss both salary and equity, emphasizing your commitment to the company's success. Negotiate based on performance milestones or equity vesting schedules. Be flexible and consider non-monetary benefits like remote work or professional development opportunities. Seek guidance from mentors or industry experts if needed. Ultimately, aim for a mutually beneficial agreement that aligns with your goals and the company's needs.

Negotiating your salary and equity package at a startup requires preparation and strategic communication. Begin by researching industry standards and understanding the startup's financial health and funding stage. Know your worth by assessing your skills and the value you bring. During negotiations, express enthusiasm for the role while discussing compensation transparently. Emphasize your potential contributions to the company’s growth. Be open to creative structures, such as performance-based bonuses or flexible equity options. Lastly, don’t rush; take your time to evaluate the full compensation package, including benefits and work-life balance.

A oferta de equity em startups é uma ferramenta poderosa para atrair e reter talentos, mas é crucial entender o que isso realmente significa. A participa??o acionária pode vir na forma de op??es de compra de a??es, a??es restritas, ou outros instrumentos financeiros. Conhe?a os termos básicos, como "stock options", "vesting" (período de aquisi??o de direitos) e "cliff" (período inicial sem aquisi??o). Além disso, entenda como a dilui??o pode afetar o valor da sua participa??o ao longo do tempo. Recomendo uma análise detalhada do cap table da startup para ver como a sua participa??o se alinha com o crescimento potencial e futuras rodadas de investimento.

Startup equity isn't free money, it's a bet on the future. Not cash: It's a piece of the pie, offering future profits or exit value (e.g., acquisition). Terms matter: Understand share types, vesting schedule (when you acquire ownership), dilution risk (company issuing more shares), valuation method (how they determine the company's worth), and exit scenarios (how you get your money). Ask for the cap table: It shows who owns what, so you know your slice of the pie.

Equity compensation can be complex, so it's essential to grasp the basics before negotiating. Familiarize yourself with terms such as stock options, vesting schedules, and valuation methods. Understand how equity fits into your overall compensation package and how it might impact your financial future. Ask for clarity on the company’s valuation, the potential for future dilution, and the exit strategy. Knowing these details allows you to make informed decisions and negotiate an equity package that reflects both your contributions and the startup’s potential.

If you want to ask for equity you need to do a bit more thorough research. Check how much of equity your role gets in general. Find that range. Then, do the research on the startup equity structure that you are working for, if you have access to that data. When you know what you would like to ask for, then research all of the potential options so you are not confused during the meeting like the type of shares, vesting schedule, etc. And last, but not least, don't be afraid to ask questions, it is important to have clarity in these talks.

Equity is a lottery ticket. It has about as much likelihood of paying off. This is more true with a seed stage company and less true if a company is at Series D. But regardless of where they company is at, converting that equity to cash is going to require you to be at the company for four years and for them to be so successful that you can sell those shares to the public or through a secondary offering. Again, think of it as a lottery ticket. All that said, if they're granting you shares, ask them how much of the company that represents. Most companies will be reluctant to tell you, but you can ask. You could also ask what those shares would be worth at various valuations. For example, if they sold for $1B, what would you shares be worth?

startup offers are about balance, not binary choices: Salary vs. Equity: Lower cash for bigger future gains (if the company succeeds)? Higher salary for immediate needs and stability? Decide what aligns with your goals and risk comfort. Beyond Money: Look at benefits, perks, and company culture. Do they offer flexibility, growth opportunities, a mission you resonate with?

Venture Capital investors target valuations where they can achieve 20x returns.You should also expect a significant potential upside for equity in lieu of salary. - Seed Stage: 6x-10x - Series A: 5x-7x - =>Series B: 3-5x Also consider these furtherr negatives(-ve) and positives(-ve) - Cap Table: Employee stock, warrants and ESOP/VSOP generally are all junior claims to those of an investor and less likely to be paid (-ve) - Warrants and ESOP/VSOP generally does not participate in distributions as true equity holders do - Vesting: High likelihood you will not receive the full package (-ve) -Tax: You "buy" stock with pretax money so get more for less (+ve) - Dilution: ~10-25% per round Bearing all this risk is worth a hefty premium

Balance Salary vs. Equity: Weigh the trade-offs based on your financial needs, risk tolerance, and belief in the company's success. Align Compensation with Goals: Opt for more equity for a potentially larger payout or a higher salary for immediate financial stability. Factor in Other Benefits: Consider perks, benefits, and company culture in your total compensation package.

Target & Walk-away: Know your ideal salary and equity range, but also have a firm "no thanks" point to avoid getting swept away. Anticipate & Counter: Imagine the company's objections ("We can't afford that much equity") and have prepared responses that highlight your value and potential solutions. Refine Your Pitch: Practice presenting your skills, achievements, and unique value proposition with clarity and confidence. Show them why you're worth the investment. Flexibility is Key: Be open to adjustments but don't compromise your core needs. Find common ground that benefits both you and the company.

When developing a strategy that includes commission-based compensation, it's crucial to align your incentives with the company's objectives. The saying that you receive more of what you reward and less of what you punish holds particularly true in early-stage companies. If the company's focus is on generating meetings, then rewards should be given for scheduling meetings. Similarly, if the aim is to sign up new clients for pilots, the incentives should reflect that. Given that early-stage companies often undergo shifts in strategies or even markets, it's vitally important to discuss how to adjust your incentives accordingly should a pivot occur. Misalignment, which I've frequently observed, can lead to burnout, resentment, and turnover.

Preparation is crucial for successful negotiations. Knowing your desired salary and equity range and your walk-away point is essential, which will establish clear boundaries. Anticipating potential objections and practicing your pitch will boost your confidence. Being flexible yet assertive shows that you can adapt to different situations. Remember that negotiation is about finding common ground and advocating for your worthwhile alignment with the company's goals. Also, remember that negotiation is about building relationships, not just securing a deal. Approach the process with honesty, transparency, and a long-term perspective. Strive for a win-win outcome where both parties feel valued and respected.

"I am going to make him an offer he can't refuse" doesn't always happen in real life! Go to the meeting with 3 numbers on your mind. 1. Best case: What you feel would be the BEST outcome for you 2. Average 3. Worst case: The point beyond which it doesn't make sense Given that there are multiple negotiating levers- pay, benefits, equity, understand where the company is willing to offer more and use those leverages to work out the deal which mutually works for both you and the company. Always look forward to hearing their thoughts and feedback and be ready to counter (either right away or after ruminating on it) Be clear and concise on what you expect and need throughout

Before entering negotiations, prepare a clear strategy. Know what your priorities are, is it salary, equity, work-life balance, career growth opportunities, or something else and what you're willing to compromise on. Consider not only the financial aspects but also other perks or benefits that are important to you. Having a well-thought-out strategy can help you navigate negotiations more effectively.

Confident & Respectful: Walk in with poise, and express your excitement, but remember, they need you too. Lead with Your Value: Clearly state your expectations, backed by evidence and achievements. Show them why they should invest in you. Active Listening: Hear their offer and concerns openly. Ask clarifying questions, demonstrating genuine interest. Holistic View: Consider the entire package, not just salary or equity. Benefits, perks, and culture matter too.

Express excitement for the role, state salary, and equity expectations backed by evidence. Negotiate the entire package for a win-win outcome. Be respectful and open to creative solutions. Ask insightful questions to understand the offer comprehensively. Inquire about the company's long-term vision and growth trajectory to determine future career advancement. Effective negotiation fosters mutual understanding and sets the stage for successful collaboration.

Before accepting a startup job offer with equity, make sure you ask the company for: - Strike price - Last preferred share price (price investors paid) - Total number of shares - Liquidation preferences This will allow you to calculate the percentage of the company you own & value it appropriately Credit: Ankur Nagpal

- Approach with Positivity: Begin by affirming your excitement for the role and the company. - Present Your Case: Clearly articulate your salary and equity expectations, supported by evidence of your value. - Engage in Active Listening: Pay attention to the company’s counteroffer and feedback, seeking clarity where needed. - Negotiate Holistically: Consider the entire compensation package, not just salary or equity, for potential flexibility. - Seek Creative Solutions: Be open to inventive ways to meet both your and the company's needs.

Consider the pay transparency laws of the state in which the job is located. CA, CO, CT, HI, IL, MD, NV, NY, RI, and WA are examples of these states. With this legislation, candidates have the right to: - Ask - about the salary range - Information - some states require the employer to disclose the wage range with all job postings - Privacy - employers are largely prohibited from asking about the candidate's salary history - Negotiate - use market research & data to establish the right comp. Note: If the company you're applying to doesn't follow pay transparency compliance and isn't straight forward about their comp, it may be a red flag about their approach to company culture.

It is essential to review any job offer carefully to ensure that it meets your expectations. You should be able to understand all the details of the offer and seek professional advice if necessary. Evaluating how well the offer aligns with your goals is also essential. If you are satisfied with the offer, express gratitude and accept it. On the other hand, if you're not satisfied, politely decline the offer while maintaining positive relations. Always make decisions that align with your aspirations and priorities. Remember to maintain a positive relationship with the company even if you decline the offer. You never know when future opportunities may arise, and it's essential to leave a good impression regardless of the outcome.

Before accepting a startup job offer with equity, make sure you ask the company for: - Strike price - Last preferred share price (price investors paid) - Total number of shares - Liquidation preferences This will allow you to calculate the percentage of the company you own & value it appropriately Credit: Ankur Nagpal

Conselho de advogado: nunca aceite uma oferta sem revisá-la cuidadosamente, de preferência com o auxílio de alguém com experiência em contratos e nos temas comuns nas startups, principalmente quando for tratar de equity. Verifique os detalhes de vesting, cláusulas de saída e quaisquer condi??es que possam impactar o valor futuro do seu pacote. Uma análise detalhada garante que n?o haverá surpresas desagradáveis no futuro e que seus interesses est?o protegidos, possibilitando ganhos que podem te tranquilizar pro resto de sua vida e, claro, empreender por conta nessa jornada fantástica.

Once you've reached an agreement on your salary and equity package, it's crucial to proceed with care: - Thorough Review: Take the time to review the offer thoroughly, ensuring you understand all terms and implications. - Seek Expert Advice: Consult with a lawyer or financial expert if needed, especially for legal or complex financial matters. - Alignment with Goals: Evaluate the offer in relation to your career goals and priorities to determine if it meets your needs and expectations.

Always take your time to consider any offer you get. In the short term, you might make an emotional decision. By taking the time, you have an opportunity to rationally approach the situation and consider all the options.

If given a choice to negotiate between salary or equity in a startup, I would certainly prefer to assess the alignment of growth with the business's vision. If I strongly believe in the startup's vision and have confidence in the founders, along with all the available or projected resources, then I would negotiate for equity. This would also align with my long-term plan. However, if I'm only considering short-term success or have doubts about the startup's viability, I would opt to negotiate on the salary. As someone with an entrepreneurial mindset, my focus would be on generating profits before beginning to utilize investor or customer funds.

When you first start a company, you'll be negotiating with your co-founders. Be sure to treat everyone fairly, your relationships and equity are worth more than the cash compensation you receive. Before getting investment from any external funders decide on what you want your salaries to be after funding and let those investors know. This allows you to have a baseline number to approach your board with even after you and your co-founders no longer have the votes or control over your own salary.

Here are 3 negotiation terms recruiters keep secret ?? Spray & Pray: ???? A job seeker frantically applies for numerous jobs without researching if they would even enjoy the job (the spray). They hope to get an interview from at least one of them (the pray). Spilling The Candy: ?? You tell the person you're interviewing with your current salary. Note: It is illegal in the U.S. for a hiring manager to ask your current salary. You never need to disclose it. Best Alternative To A Negotiated Agreement (BATNA): ?? Alternatives to a negotiated deal. Ex/ If X company doesn't meet your salary and time off requirements, then you will accept the offer with company Y.

When it comes to negotiating equity in a startup, as someone who had to do it for joining as a late Co-Founder, I considered: - Team - Company Valuation - Projections over mid and long-term - Exit opp and liquidity events (at least the probability) - Vesting period - My age - How joining the company would contribute to my professional career :)

I cannot stress this enough: cash is king. Equity is given as a way to offset a lack of cash and create a golden-handcuff situation. Your appetite for equity at a startup should equal in your propensity to gamble. Most startups fail and never have a liquidation event, meaning the equity becomes worthless. A couple points of consideration that increase/decrease the potential for realized value: Increase: 1. >$10m in revenue in <5 years 2. Profitable (or close) 3. Repeat founders 4. Investment by Sequoia Decrease: 1. Series B, C, D and very high burn (they spend 2x+ what they make) 2. Limited number of accounts in their target market 3. Last round was greater than 20x revenue I'm not saying avoid equity, but fully understand the risk.