DancingNoodle

Equity as the first employee

I will be the first employee at an early stage startup. I have 2 YOE and was offered 0.25% equity with standard salary. Is the equity too less?

23mo ago

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GoofyDonut

Stealth23mo

Looks kinda less, for context I was offered 1% (over 4 years of course, subject to dilution later) for being the second employee some years ago

GoofyDonut

Stealth23mo

But also depends on how many folks they plan to hire. In my case it was only 4 hires initially

MagicalHamster

Stealth23mo

Hey @potatomato I think in this case you would be senior ~4-5 years of experience? And probably being hired to lead something?

For context, was offered 1% as well But typically at 2 YoE engineers are hired at 0.25% or 0.5%

WigglyBanana

Stealth23mo

https://www.linkedin.com/posts/peterjameswalker_startup-founders-what-should-you-give-your-activity-7066805030913277952-I3SI?utm_source=share&utm_medium=member_ios

Sharing a reference image that might be helpful Carta published this data

DancingNoodle

Stealth23mo

Thanks!

WigglyBanana

Stealth23mo

@Phoenix69 there is an AMA happening on this topic
Have asked there as well since this data may not be India specific

FuzzyCupcake

Trellis23mo

Equity is gamble just like lottery ticket until and unless makes it to IPO or some company acquired it is all useless ask for more salary

TwirlyUnicorn

Stealth23mo

@Phoenix69 are you an engineer? Or do you have any professional degree like CA, CS or CWA or law?

DizzyWaffle

Stealth23mo

Equity is also offered as a multiple of ctc, can range from 0.25-0.5 of ctc for initial roles. Your main asset is the fact that you are an early joinee. If you like the founder, the company and the business model, work nicely. Esops and other things will follow.