Answers
Sep 07, 2017 - 09:32 PM
1% to 2% is what I've known several friends to have been offered who were first or really early engineers, who were being paid about 60% to 70% of their market rate salary. In your case, you should ask for more (maybe 5%) because they are pre-funded and you are assuming a lot of risk.
Sep 09, 2017 - 10:52 AM
Is it an either / or situation? If you are only compensated in equity, your risk level isn't that much lower than the founder(s), and if no one else is an engineer, there is a good chance that you'll be the only one for a long while.
So - evaluate your risk levels. Are the founders "known entity" that you would invest money with if you could? Could they participate in crafting the first product, or is it all on you? Could they do the product without you?
I've seen people getting 1% or even 10%, but at the end of the day it all depends on the parties involved on who needs who more. You need to consider your own run ways as well. Be sure to take care of your own needs first.
So - evaluate your risk levels. Are the founders "known entity" that you would invest money with if you could? Could they participate in crafting the first product, or is it all on you? Could they do the product without you?
I've seen people getting 1% or even 10%, but at the end of the day it all depends on the parties involved on who needs who more. You need to consider your own run ways as well. Be sure to take care of your own needs first.
Sep 09, 2017 - 12:21 PM
Hi Tim,
5% as an engineer is crazy, 1% is pretty high unless you are really the founding engineer.
Most early stage companies offer 1-2% for VPs, 0.25-0.5% for directors, 0.1- 0.25% for managers and less for regular front line Individual Contributors.
But every company is different, it depends whether you are really a founder, how much salary you are taking and how well you negotiate.Hope that helps.
5% as an engineer is crazy, 1% is pretty high unless you are really the founding engineer.
Most early stage companies offer 1-2% for VPs, 0.25-0.5% for directors, 0.1- 0.25% for managers and less for regular front line Individual Contributors.
But every company is different, it depends whether you are really a founder, how much salary you are taking and how well you negotiate.Hope that helps.
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