3603e210
joined a series A as employee #12. 0.3% equity. worked 60+ hour weeks for 3 years.
company got acquired for $200M. sounds great right?
liquidation preferences meant the investors got paid first. after the preferred stack, employee pool, and dilution from series B and C... my 0.3% was worth $47,000.
$47k for 3 years of my life working 60 hour weeks. i could have made more working at walmart.
startup equity is monopoly money until proven otherwise. negotiate for cash.
d0fa9a1c
0.3% at series A is already trash. that should have been your first red flag. employee #12 should be getting 0.5-1%+ minimum. you got lowballed from day one
02f5c1e6
liquidation preferences are the silent killer that nobody explains to employees. your shares are COMMON. investors have PREFERRED. they eat first. you get scraps. this should be illegal to not disclose during offers
f8fb4978
i tell every startup employee: multiply your equity by 0.1x as a realistic estimate. if the number still excites you, take the job. if not, negotiate higher base
7d9a7053
counterpoint: i was employee #8 at a company that IPO'd. my equity was worth $3.2M. it does happen. but you need to be at the RIGHT company at the RIGHT stage. most people arent
8e22b4e6
the math: 60hrs/week * 52 weeks * 3 years = 9,360 hours of extra work above 40hr/week. $47,000 / 4,680 extra hours = $10/hr for the startup premium. literally below minimum wage
