Typical compensation for seed-stage employee?

[Doughbot]

Hi,

I'm having a lot of trouble finding info on what's reasonable for a very early, seed-stage employee in terms of compensation.

The company is currently just starting to raise seed money (currently at <$100k), but has good prospects IMO. There is also no product or anything, just an idea and a rough prototype.

I am moderately accomplished in my field (non-technical with a master's degree), but have no startup experience. They're offering 10% (two co-founders each get 35%), and everyone would take $2k/mo in living expenses (founders included, <1/3 my current salary).

The founders haven't founded companies before but know their industry well, they're basically the ones who know what we're doing in terms of programming, marketing, fundraising - I'd be the "everything else" of the outfit and also help with the marketing/fundraising.

Because I'm being brought in so early, I'm having a lot of trouble figuring out what's normal. Am I being brought in in MUCH earlier than a normal employee, or only a little earlier?

I'd probably still even do it for the experience (good friends, good city), but I want to come in with eyes open.

Thanks!

[smegmalife]

This is much earlier than a normal employee. I'd say this is about right, although you should be considered a founding team member and not an employee.

[Doughbot]

Thanks so much! So apart from the issue of founder v. employee, you think this is a reasonable situation? I think the founders are happy to bring me in because I'm generally competent/capable (and we've been friends for 10-15 years, they know I'm reliable), but again, they are the ones with all the industry knowledge.

I've had some people pressing me to push for founder status, but I think that's a bit much.

[mswen]

The offer is clearly more like a founder in that you are agreeing to a significantly below market salary in exchange for a pretty sizable chunk of equity. So whether the "title" of co-founder is given or not, they are treating it more like a minor partner/founder.

Given that this offer is equity heavy - you should understand things like vesting schedule, and dilution when additional investment comes in.

[Doughbot]

Thanks for the heads-up! My background is legal, so I am actually excited to learn about that stuff. =)