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WWAW equity compensation?

H

Huh?

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‎
Forum Clout
6,696
guest said:
CAVEAT this is tech shit only


It's not really that simple. It's a bit of a gamble, but you can assess the risks based on different factors. As the funding rounds increase the risk lowers, but so does the reward.
  • Angel / Founder - CTO/CEO/Founding devs -- If you're a founding member you're going to get paid shit (or not even paid at all if you're pre-revenue). But that's the risk you take, CEO/CTO etc will have 10/20/30 % equity and board seats if you ever go public.
  • Series A - < 3 million <10 employees - You're getting paid shit but you're still in the 1 or 2% of ownership
  • Series A 3-10 mil - Here you're getting options most likely. Since they've raised millions and the FMV is in the cent range, the means there's 90 million or more shares. You'll be getting 100-200k options, but they will get diluted. Even So an IPO at $20 will net you a few million. Total ownership will be in the fractions of a percent. >0.1% if you're lucky.
  • Series B 10-50 mil - This is a pretty well-established startup. You'll Still get a decent amount of options, but salary is taking a hit. Less risk, so this is a good spot to get decent options while mitigating risk.
  • Series C 50 mil + - Cs are all over the place. They might get acquired, go IPO too early. You'll get a decent salary and options so its not a bad spot.
  • Series D 100 mil - This company is getting acquired or going public in the next few years. You likely will be making market FANG rates so you're missing out on RSUs but you could get $500k-1mil back in options. This is going to be a 300+ employee company. It will grow fast as shit. Don't get fired and vest your options.
etc.

Then each round and valuation you will have a basic idea of how much of a pay cut you can take. The only massive cut you'd get would be pre-series A or a small series A. ~ < 3 million. We're talking like 25% max pay cut for a couple of years with a massive upside. Further down the series and you barely make less, if any at all.
  • Series A - 15-25%
  • Series B 5-15%
  • Series C - 0-5%
  • Series D - FAANG Market Rates (base salary + options for IPO)

If you're talking public companies compensation, like getting RSU in compensation (and not ISO / NQO) , it's probably almost always a good idea. RSU and equity packages give you a lot of options during taxes to move things around, defer losses, do backdoor roth shit. It easier to do clever accounting that way.
Click to expand...
You looking for a job, brother?
 
G

guest

Guest
Null Should Kill Himself said:
You looking for a job, brother?
Click to expand...
Blow, hand or rim?
EZ3KiWiU8AAXl2T.jpg
 
Uncle Ruckus

Uncle Ruckus

Daniel Mullen from insightsoftware is a pedophile
‎
‎
Forum Clout
2,460
guest said:
CAVEAT this is tech shit only


It's not really that simple. It's a bit of a gamble, but you can assess the risks based on different factors. As the funding rounds increase the risk lowers, but so does the reward.
  • Angel / Founder - CTO/CEO/Founding devs -- If you're a founding member you're going to get paid shit (or not even paid at all if you're pre-revenue). But that's the risk you take, CEO/CTO etc will have 10/20/30 % equity and board seats if you ever go public.
  • Series A - < 3 million <10 employees - You're getting paid shit but you're still in the 1 or 2% of ownership
  • Series A 3-10 mil - Here you're getting options most likely. Since they've raised millions and the FMV is in the cent range, the means there's 90 million or more shares. You'll be getting 100-200k options, but they will get diluted. Even So an IPO at $20 will net you a few million. Total ownership will be in the fractions of a percent. >0.1% if you're lucky.
  • Series B 10-50 mil - This is a pretty well-established startup. You'll Still get a decent amount of options, but salary is taking a hit. Less risk, so this is a good spot to get decent options while mitigating risk.
  • Series C 50 mil + - Cs are all over the place. They might get acquired, go IPO too early. You'll get a decent salary and options so its not a bad spot.
  • Series D 100 mil - This company is getting acquired or going public in the next few years. You likely will be making market FANG rates so you're missing out on RSUs but you could get $500k-1mil back in options. This is going to be a 300+ employee company. It will grow fast as shit. Don't get fired and vest your options.
etc.

Then each round and valuation you will have a basic idea of how much of a pay cut you can take. The only massive cut you'd get would be pre-series A or a small series A. ~ < 3 million. We're talking like 25% max pay cut for a couple of years with a massive upside. Further down the series and you barely make less, if any at all.
  • Series A - 15-25%
  • Series B 5-15%
  • Series C - 0-5%
  • Series D - FAANG Market Rates (base salary + options for IPO)

If you're talking public companies compensation, like getting RSU in compensation (and not ISO / NQO) , it's probably almost always a good idea. RSU and equity packages give you a lot of options during taxes to move things around, defer losses, do backdoor roth shit. It easier to do clever accounting that way.
Click to expand...
Oh literal @admin
 
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