Ask HN: Equity for a founding team member at a funded startup

Posted by wushupork on Tuesday June 22, 2010 @02:51PM
from the ask-hn dept.

Hi all, I figured this would be the best place to ask this question. What can someone who's joining a funded startup expect in terms of equity if they will be part of the team, maybe in terms of C-level for lack of a better word. But not the CEO. I really have no insight into this and figured this would be a good place to ask.

( 3 comments | 11 points | on HN )

Re:Ask HN: Equity for a founding team member at a funded sta... by MaddHatta on Tuesday June 22, 2010 @04:15PM (#1453027)

Aaron Patzer (Mint CEO) gave a really good talk at the Founders Institute on equity and compensation in startups. It is worth the read/watch and gives you a good ballpark idea.

http://techcrunch.com/2009/10/08/startups-101-the-complete-m...

tl;dr Just an Idea and you need a tech or other important role expect to give away half.

Have a little traction and the makings of a company 5-10% range for a key employee.

Established and but still paying reduced salary 1-3%

[ Parent | on HN ]

Re:Ask HN: Equity for a founding team member at a funded sta... by Travis on Tuesday June 22, 2010 @04:03PM (#1452989)

My company is looking at 1-4% for our first employee. We have the technical chops, so this hire will be a serious expert in our core business. Equity will vary in that range (for us) depending on salary and effort level requirements.

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Re:Ask HN: Equity for a founding team member at a funded sta... by blacksmythe on Tuesday June 22, 2010 @04:11PM (#1453012)

80% for VCs, 5% for the CEO, remainder split for everyone else is not uncommon. The first employee should be looking for 1-2%, maybe 3% for the CTO.

If you can, find out how much is the funding, and how much of the company was allocated in return for funding. If the funding level is low, you shouldn't go there unless you have a really good equity position. Also, if they are not transparent about the funding and funding conditions, don't go.

[ Parent | on HN ]