How do you evaluate a startup offer?
Tips to Evaluate a Startup Job Offer:
- Understand about start up companies:
- Your role at the start up:
- Assessing performance:
- Who is the boss:
- Financial aspect of a start-up:
- Startup salaries:
- Get offer in written:
- Understand the shares:
How do you evaluate a job offer with equity?
- Consideration #1: The Current Value of the Equity.
- Consideration #2: The Current Valuation of the Company.
- Consideration #3: Desired Exit Strategies for the Company.
- Consideration #4: The Vesting Schedule of Your Options.
- Consideration #5: Your Passion for the Work / Role.
- Conclusion.
How do you evaluate an equity offer?
When evaluating an equity offer, you must first understand the lingo. You’ll want to ask educated questions and determine as much as you can about your equity offer up front in order to judge the value and weigh the risk versus potential reward.
How should I evaluate a company for a stock option offer?
Attorney Mary Russell, Founder of Stock Option Counsel based in San Francisco, advises that anyone receiving equity compensation should evaluate the company and offer based on his or her own independent analysis. This means thoughtfully looking at the company’s capitalization and valuation.
How much employee equity should you have in Your Startup?
The number of shares or options you own divided by the total shares outstanding is the percent of the company you own. At a typical venture-backed startup, the employee equity pool tends to fall somewhere between 10-20\% of the total shares outstanding. That means you and all your current and future colleagues will receive equity out of this pool.
How do I find out what equity grants companies offer?
Glassdoor, Payscale, and GetRaised are good places to start on the salary front, and you can sometimes see the equity percentages companies offer on AngelList. Know what parts of the equity grant are negotiable. Unless you’re an executive, you’ll likely only be able to negotiate your number of shares.