Startup offer negotiation

Question

I've been talking with a post-seed startup company about joining them as a founding engineer. I think I'm going to get an offer, but I've only ever worked in big tech, and I have no idea what my offer should look like/how much I should ask for (cash & stock)

They've recently raised a few million (and turned down more), and the product seems fantastic so I have confidence that they'll be successful or at least be around medium-term.

Hoping I could get some guidance.

4 YOE, front-end/full stack. TC $170k

ramenenjoyer · Accepted Answer

Startups are tricky because the equity could end up being worth nothing and it could also end up being the reason why you create generational wealth lol.

That being said, what level are you currently at in big tech and where are you located? A TC of 170k would be about the median for SWEs across the US, but I'm not sure if you can expect the startup to compensate you as well as big tech, at least in their base salary.

chuuj615 · Answer

Aside from the offer itself, how do you feel about possibly increasing your workload and stress? Although big tech isn't perfect for WLB either, it's definitely better than being a founding engineer at a startup.

Even if you get compensated amazingly, it's probably worth it to think that over a bit. Unless you genuinely enjoy software engineering like that, it might not be so great.

NotMuch · Answer

Also, is the equity dilutable? 1% full ratchet  is very different from 1% incrementally diluted.

devopseng · Answer

If you have a lot of risk tolerance and are ready to invest a lot of time into it with a very, very small chance to make generational wealth, go for it.

elmansto · Answer

You'd want the equity to be on the higher side with clear definitions for refreshes. This position is nearly being a founder. I'd make the argument if you being a founder vs a 1st employee. It depends how much funding they've acquired. Also if recommend you have your limits if it's high equity and very low base. When do you tap out? Make sure the vesting cliffs are extremely clear

Startup offer negotiation

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