| The best resource on equity: https://www.holloway.com/g/equity-compensation Earlier version on GitHub: https://github.com/jlevy/og-equity-compensation Also look at the Index Ventures link and calculator:
- https://www.indexventures.com/rewardingtalent/calculating-in...
- https://www.indexventures.com/optionplan From your question and knowing nothing else, I assumed it was probably low - but it depended primarily on salary and total compensation (is it market rate for your friend? How far off?). From other answers (the company's fair market value is $30- $70 million vs $0 or unknown, the salary is slightly under market rate), it depends on the difference between your friend's total compensation here and other offers (or realistic other offers they theoretically could get). I'd ask for more than the difference between this start up's total comp and other offers. Why? Expected value and risk. Get a reasonable risk adjusted amount given liquidity and likelihood it will ultimately be worth $0, $1,000, or even $10,000 (good chance it's in the 90-98% range, and if the company wasn't already worth something it'd be closer to 99%). It's probably in the ballpark of fair, but not quite there for your friend. |