Ask HN: Equity Offer

1 pointsapurvak4y ago4 comments

I am relatively new to the startup world. As an early employee, I am offered options at a price with a total value of X. For a company of a total of 30 employees, what is a good framework to think about my compensation? I would love to chat with someone with prior experience who might guide me in the right direction.

4 comments

SaberTail4y ago

You are not being given X, you are getting paper that lets you pay X to get shares worth X. Their value is zero.

At best, they're a lottery ticket. You can look at something like http://www.valuation.vc/ that uses data from other startups, to get an idea of what your odds are that they'll ever be worth something. Usually the odds are not very good.

sethammons4y ago

generally, count equity as a lotto ticket

apurvakOP4y ago

Sure. That is understood but how do I find out what is the good offer for an equity?

sethammons4y ago

I don't think there is a good answer to your question beside "it is a good offer if it entices you to join their company." I guess you could ask what percent owner it would make you and what your liquidation preference is. Depends on how early you are too.

j / k navigate · click thread line to collapse

Ask HN: Equity Offer

1 pointsapurvak4y ago4 comments

4 comments

SaberTail4y ago

You are not being given X, you are getting paper that lets you pay X to get shares worth X. Their value is zero.

sethammons4y ago

generally, count equity as a lotto ticket

apurvakOP4y ago

Sure. That is understood but how do I find out what is the good offer for an equity?

sethammons4y ago

j / k navigate · click thread line to collapse