| 1. A promise of equity is a red flag. A professional startup puts this in writing. If things don’t work out, that’s what vesting is for. 2. Wearing all the hats and the only technical hat initially puts you a lot closer to founder status. 3. “landing projects” doesn’t sound like a startup, sounds like a consultancy. Taking reduced market salary here for equity doesn’t seem right, the equity will never likely payoff to justify it. Step 1. Interview at big companies. Figure out how much you could earn (total comp: salary, bonus, and guaranteed equity). Also to get a BATNA. Step 2. Value the startup. Account for professional investors, market size, likelihood of success, etc. Don't just go off what the founders tell you. Look at comparable startups and their exits. Step 3. Figure out how much the money you gave up is worth. Multiply it by 4 (last year plus the next 3) then figure out the percent of the company. Would also probably double it for the risk you are taking. (Note: You should immediately vest the prior year and have no cliff for the three remaining). Step 4. Negotiate from a higher starting point (I’m a sucker for putting out what I think is fair and having it cut). Be ready to walk with your BATNA. 5-10 percent might not be unreasonable with what you are bringing to the table, especially if this is more of a lifestyle business than a professionally backed startup. Good luck and don't be afraid to move. |