Ask HN: Negotiating with an early startup | Hacker News Reader

Ask HN: Negotiating with an early startup

6 pointsdaktanis7 comments

So I've been offered a position at a new startup with good funding, good plan and a mvp already. I'd be coming on as the first employee to create a more robust back-end and start expanding the product.

I already have the answers for:

Is a start-up for me? Does this start-up look like it has a future?

And now I'm at, what do I ask for at the negotiating table?

I've been offered a salary about 12% less than my current, but better benefits, better working environment and room for growth.

I don't really know what protocol on asking for equity is or if I should. It wasn't brought up in the original offer so I'm not really sure on it.

Anyone have any more experience in this area?

Thanks!

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Past related discussions on this topic: https://news.ycombinator.com/item?id=7772475

Interesting reads, but I feel don't quite hit my question on the head.

Do you have interest in equity? If so, absolutely ask about it. It is one of many levers you can pull to make the offer fair and desirable for you. If you pursue it, make sure you understand their offer though. There are many "gotchas" with equity that can make it worthless.

You mention their offer is 12% less than your current salary, but how does it compare to industry averages in your region? If they have funding and a roadmap, they may be able to pay market salaries, or even a premium for top talent. Are you willing to take a pay cut or less than market rate to do work you love/get in on the ground floor?

Most of all, I would encourage you to negotiate whatever offer they make. Trying to negotiate never hurts, and can make a big difference. Figure out what your bottom line is, what the value you provide is, your best alternative to working for them, and then confidently ask them what they can do for you.

Fair advise. I am willing to take a paycut to work there, but ideally if/when the product hits the market I'd like to be compensated for taking that cut. The business side of this industry is still kinda of fuzzy to me, and I didn't want to go around asking for the wrong things. Being a private company with the one founder and three investors what is fair to ask for?

What is fair to ask for? The market rate and not a penny less.

Stock options or equity are one of the draws for working at a startup. Particularly as an early hire or taking a pay cut I would expect some equity. I'd be suspicious if the founders aren't offering a small amount of equity.

You may find this article by Sam Altman and the discussion that stemmed off it informative

https://news.ycombinator.com/item?id=7610527

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