

Position in startup - emp. #5. Equity negotiable after 3mnths - normal? What percentage reasonable? - wr1472


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pg
A startup is right to want a trial period for such an early employee, but 3
months is on the long side. Half that should be enough for them to decide.

The percentage is impossible to predict. On average maybe 2% for a hacker.
Less if they're post series A, or the salary is substantial.

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wr1472
I've been offered a development position in a startup. The technology is
pretty cool and I think has potential. I think there is a high barrier to
entry in addressing the same problem. The company has just secured round a
funding and estimates there should be enough money to keep going for 12 - 18
months with the growth anticipated. I don't now these guys personally and only
ever spoke to them during the interview. Would I be crazy to accept or should
I be a bit more diligent?

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wr1472
Salary is market rate, I think I may push for a shorter trial period, or more
importantly a clause saying I will get a minimum amount - say 1% which we can
then negotiate an increase on in 3 months.

To be honest a trial period of 1.5 or 3 months seems inconsequential, what I
am mindful of is at the end of the trial period, they change their minds and
say they're not going to offer me any equity.

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pg
It's reasonable to talk about what range of numbers they're thinking about.
You don't want to work 3 months and then learn they consider .1% generous. But
if you specify a minimum, that may start to become the default number in both
your heads.

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wr1472
Thanks for your input, I think I will ask to see what range they are thinking
about. Will let you guys know what they say!

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wr1472
Just had a chat with one of the cofounders. I misunderstood / recruitment
agent mis-told me that it was equity, rather it is a company share option
scheme.

I will be offered 100 shares (3yr vest period) which isn't great however this
will hopefully be pre series A and so strike cost should be a lot less post
series A.

Is it worth going for share options (even if it's only for 100 shares)? I
don't see this as compensation for salary but more of a bonus if anything.

what does eveyone think?

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joshwa
Negotiate your percentage now (single digit percentage would be appropriate
for non-founder with low employee number), and have it vest over 12-24 months.
"negotiable in 3 months" smells fishy to me.

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wr1472
I think what is negotiable in 3 months is the amount of equity. what I may ask
for is the guarantee of some (read minimum amount of) equity in 3 months
written into my contract.

