YoursTruly

Account Executive (SaaS)

Valued Contributor

Another Series A conundrum - Leave blue chip Saas for a startup?

The rub of it is I'm a Growth AE at a blue chip SaaS company that you all would know. I've only been here for a few months, don't love the culture. It's steady work in a turbulent economy, 60/40 base to OTE.

Was approached by a Series A startup who recently received their funding and are running about 75% inbound right now. I'd be the 4th AE. My Salary would go up about $10k and my OTE would go up by $45k. No equity. No non-recoverable during ramp. I like the product, like the space they sell it into, and the people seem genuine.

While the added salary bump and OTE potential is nice. feels like i'm taking risk without the equity upside. I'm also leaving probably 15k or so of commission on the table.

I miss new logo, i like being a builder, AND it's a tough economy right now to leave a steady growth/renewal role.

What else should I be evaluating?

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34 comments

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oldcloser

Arsonist

16

💀

Your personal opinion of the product is basically irrelevant. You must validate Product Market Fit - Make sure people will actually pay real money, USD, CAD, Euros, Rupees or whatever they spend, wherever they are, for the solution. Talk to a current rep. Dig in to the deal minutia from the last few deals. It's necessary research.

The $15k you may be leaving behind will get dwarfed if the new deal has a sellable product. That's not what you're throwing away. What you are potentially tossing is the value of a long stint where you are. 5 years of good production at big tech co is an easy path to management at an early stager.

So, if the product is shiny but nobody cares, it's a non-starter. If it's sellable, you're really weighing a short to medium term pay raise against a path to management next time.

If it's a shitty outlook where you are, but there's no heat, the long game is often the wise game.

Good luck, brother.

braintank

Politicker

11

Enterprise Account Executive

Now isn't the time to join Series A's

Also they don't respect you if they're not offering equity

MattClark

Executive

0

Senior CyberSecurity Consultant

I second this. I'd add that if they're unwilling to offer guarantee, you need to find out why? Can they show you the success rate of new sellers out of the gate? Time to first deal closed? Sales cycle?

If they say no guarantee and it's a 6-12 month sales cycle, walk away, they have no confidence that you'll exceed it and that's why they aren't confident in offering it. Alternatively, they may just think their shit doesn't stink and you're "lucky" to work there...even worse.

I've been selling a long time. I've been successful about 75% of that time. I've seen and worked within countless sales orgs and I can tell you with confidence, most companies don't have a f'ing clue how to do it right. The ones who do are the logos you recognize or the rocket ships you know the name of. The series A folks are a total crapshoot, BUT that's a high risk/high reward scenario, so it could work out...just a long shot.

foundingae

0

Enterprise Account Executive

agree on the equity piece. joining the RIGHT series A was the best decision of my career in 2022.

YoursTruly

Politicker

8

Account Executive (SaaS)

I appreciate everyone's input. I spoke with some former colleagues for their opinions, my wife (of course), and a friend who's connected with some SF VC's. Everyone said similar things to you all and that it is a big red flag if they aren't in a position to offer equity or have a timeline in place for when that's even feasible. I decline the offer today and am going to put it behind me and focus on accelerating where I'm at. Culture be damned, I can still make good money and get experience with a well known, trusted software company.

therealmilsch

Executive

2

VP Sales & Deal Flow

This is a smart move. Every one of my reps (current or former) who come to me and ask about a new gig at a "super hot startup" and I ask them a few questions:

1) Are you hitting your number now?
2) Outside of the culture, are you able to stomach working at your current job (i.e. is your mental health ok)?
3) Aside from the allure of the grass is greener, what else is really compelling you to leave?

If you are hitting your number, your territory isn't being severely impacted, and your relatively happy, every sales gig at every company, startup or blue chip, is going to be a slog. Literally. Unless you are a masochist, and even if you are the best rep, the gig kinda sucks, right? Nothing you do is good enough, no matter how much time you put in, performance is all that matters, and when you perform, your director asks you "What else can you do for me?"

Given everything with the current economy - a move to a series A from a stable job, doesn't make sense, especially if they aren't giving out equity.

Just make sure not to kick yourself if the series A takes off. Gotta make the smart decision for you and your family and live with it.

MattClark

Executive

0

Senior CyberSecurity Consultant

The fact that you'll listen to your current reps about potential job shifts and not punish them for it tells me you're one of the good ones. I wish I could say I've worked for more than a couple like you. Well done!!

bravadojanitor

Opinionated

6

product

Having had a couple runs with startups myself, I don't think the startup offer is worth it. Here's why:

1. You're going to be working a ton more at the startup and for $10k base increase? No.
2. Given the current economic climate, taking a gamble on ANY startup is risky.
3. The only thing that can adjust for the 'risk' you take while giving up a blue chip SaaS role is EQUITY. So no equity? Hard pass.

If you like the people and they like you back, and you're truly passionate about the space/product/industry > go back to them and ask for all of the above.

Phrase it as "While it would be my dream to work with your team and on your product, the offer is a little difficult for me to accept due to the following reasons... is there any wiggle room on my package?"

countingmyinterest

Politicker

4

Account Executive

Not worth the risk imo. Series A companies can hire you, then CEO can decide it's not working out, and you get fired 6-9 months later.

Huge hole on your resume and not worth the switch for $10k.

Pachacuti

Politicker

2

They call me Daddy, Sales Daddy

Or 6-9 weeks later.

0

Enterprise Account Executive

Ouch, that comment hit home for me. So true

countingmyinterest

Politicker

0

Account Executive

That's what happened with me in the last 2 startups.

Gotten so jaded with tech completely.

0

Enterprise Account Executive

I'm there with you. I'm now highly allergic to startups - my last two were seed stage. Currently looking for alternatives outside of tech.

Space_Ghost20

Valued Contributor

3

Account Executive

I would check on LinkedIn to make sure that you would be in fact the 4th AE. Startup I worked for before my current job told me I'd be the 2nd AE hired. After I did some research (unfortunately after starting the job) turns out they had 2 AEs before who didn't last 6 months. And now if you look on their website it shows they're currently hiring for a "founding AE." I would just say to verify everything. But after my experience I would never leave a stable company that I was succeeding in for a startup. Unfortunately, I don't think I'll ever work for an established company.

Pachacuti

Politicker

3

They call me Daddy, Sales Daddy

My advice - stay at the blue chip for at least a year, if not 2-3 years. It’s not a good time to jump to start up land and that blue chip SaaS company will be much more valuable with a couple years under your belt.

2

Head of Business Development

75% inbound is incredible for a startup. Indicates they have a strong product. I would verify that. It is strange not to give equity but I'd simply ask why.

HVACexpert

Politicker

1

sales engineer

Another thing to take into account is benefits. What’s your insurance/401k like right now vs new company? Company credit card? Company car? Travel required? That stuff is not always directly affecting business but it can all affect your pocket book in a real way and should be taken into consideration.

There is also a lot of talk about contracts and commission structure here and a lot people get burned, check out the paperwork before you sign and ask questions if you have concerns.

Justatitle

Big Shot

1

Account Executive

From personal experience Series A is way to risky. What is their current ARR? and are the other reps all above 80% of quota consistently?

CPTAmerica

Opinionated

1

President/CRO

Keep in mind OTE at start ups is typically a shot in the dark. Sometimes for the better but that’s rarely the case.

Funded companies can come with tremendous pressure so be aware of that. If they’re whole goal is additional rounds it can eat away at the culture.

Reminder life’s a risk, blue chips have been laying people off everyday. You’re not wrong, a startup is likely riskier but nothing is guaranteed either way.

With that said, I always lean toward the startup. More fun, learn more, make an impact, your voice matters, build some really great relationships.

If you have to walk away from owed commission it’s not unreasonable to bring that up with the new company. Maybe they bonus you for a couple of month to help make up for it.

jefe

Arsonist

0

🍁

At least there’s likely to be decent severance at a blue chip after 5 years, if layoffs do happen.

CPTAmerica

Opinionated

1

President/CRO

Good point. However, I prefer to focus on what could go right vs what could go wrong.

jefe

Arsonist

0

🍁

Oh absolutely. Just being pragmatic

Revenue_Rambo

Politicker

0

Director, Revenue Enablement

They’ve got to be crystal clear on how comp plan works. Series A like to be “creative” with how they pay out sales. There was a recent post here about gated quotas. That higher OTE could mean nothing if you’re having to navigate thresholds gates and caps to get paid.

punishedlad

Tycoon

0

🧙‍♂️

Couldn't get me to touch a Series A with a 39 and a half foot pole. If I were you, I'd stay put. Series A is a huge friggin risk right now.

CuriousFox

WR Officer

0

🦊

Freedom? Independence? Support?

Maximas

Tycoon

0

Senior Sales Executive

Series A in these economic conditions is risky like hell,maybe later but not now!

AnchorPoint

Politicker

0

Business Coach

You don't have equity now... and you don't have the 40K bump either...

0

Global Operations Director

Who are the VCs - what is the burn rate and runway - how are the other AEs performing and do they have the TAM and sales motion defined to ensure repeatable and scalable success OR the leadership/people in place to create that.

Minimise risk by going hard on the due dilligence, and make sure never to burn your bridges in case you ever want to go back to either company

0

Vice President of Sales and Business Development, Chief Revenue Officer

join no startup without equity. The CEO doesn't understand the real game. Get everyone on the team highly committed.

BANToutofshape

0

Sr. Account Executive

Series A in an economy that is about to spiral out, coupled with 0 equity sounds like not a great fit. You can probably find new logo, hunting role at a more established company or later stage funded companies that will provide you more stability and security and still have a strong culture.

Also inbound leads dry up very fast, I’ve never been accurately given inbound lead numbers and had them been even remotely accurate. You are still going to be prospecting for a small company that no one has heard of, instead of a company that’s a “blue chip” which is a mindset shift. Better question to ask the company is what is the purchasing cycle look like on average, what’s the quota look like, and how are the rest of the team members performing to that quota. I would even ask to talk to the reps and also the SE’e to understand scope of engagements, time to delivery, etc.

dorsiacro

Politicker

0

Account Executive

From someone who just did it and is regretting it big time, stay where the money is. Series A too much risk right now

0

Head of Sales

No equity for AE #5 at an A? Flag

MattClark

Executive

0

Senior CyberSecurity Consultant

If you like new logo and being a builder, you are a rare commodity and can have success just about anywhere. I hate it. Look at the competitive landscape for this product. Who are the bigger players in the space? Are you directly competing with them to take them out or is it additive to their solutions? You're rarely going to win on "my solution is cool and better, but nobody knows who we are"...it's next to impossible and, unless your executive team understands that, you're f'd out of the gate. Make sure the ELT is solid. Make sure the product is not just winning deals but keeping customers...go look at reviews on the peer communities, even ask the question there. Make sure that the GTM is a partnership and marketing isn't just "salespeople prospecting". There are thousands of solutions out there that will never see success...be careful.

In the end, shoot your shot, it's not going to end your career, but make sure you're 100% comfortable with the worst case scenario.

foundingae

0

Enterprise Account Executive

Careful with 75% inbound esp if they just announced funding. That pulls a lot of people that love to buy the "hot new" thing to the website. Those people dry up quick and before you know it, you're expected to drive the same number of leads going forward.

Series A is all about equity. The founders have plenty to share and your hope is to get acquired and get paid. I'm in series A right now and sitting on 10k shares.

OTE is pointless as well, no one has a single clue what you're going to sell. It's all based on a spreadsheet. Just make sure you're getting the right % on your commission.

For example:

$150k base/ $150k commission $1mm annual quota = 15% commission rate
$150k base / $150k commission $1.5mm annual quota = 10% commission rate

That's a huge difference on how much you actually take home.

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