Ask HN: How much equity should I ask for?

3 points·jetupper··8 comments

I've been invited to join a startup as it's first employee and I was asked to think of the compensation package that I would like to receive, which includes equity.

What is a fair amount of equity to ask for?

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What's your role gonna be? Will you have a Founder title? That will completely inform the answer. Joining as a co-founder or President? Go big, 5-10%. An exec? Aim for 3-8%. An Engineer or other role? 1-3%.

And of course, always ask for more than the above at the outset. It's a negotiation.

I won't be joining as a co-founder, and the role i'm gonna play in the company is more on the engineering / product side.

So i'm guessing somewhere around the 5% region would be fair?

You would be blessed to get 5%! Standard from what I see in early stage startups in Silicon Valley... I'd shoot for 1%, and be happy with 0.5%. Dirty secret of the Valley: You only get rich if you are a co-founder, or join the next Google.

Ah, pardon my naivety. Well, I'll look at the figures you provided then. Thanks!

5% for an engineering guy? How many employees could they hire before they run out of shares?

Thanks for the reminder, was too naive!

Are you taking a reduced salary? How much would they give you if you had invested that amount in cash instead?

Well no, I won't be taking a reduced salary for they're willing to pay (close to) market rates.

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