How should I negotiate equity?

Hey sales savages!


I am contemplating joining a series C start up ($10M ARR with a target of $30M ARR this FY). Next FY they're targeting $30M to $90M. Mostly PLG, this would be a founding AE role reporting into an RVP amongst 2 other AEs.


Given the above information, what would be a feasible negotiation strategy and what should I expect from a company at this stage in terms of equity?


At my current company, I received a total of 3,500 shares when they were at $30M ARR that increased to 7,500 over two promotions with a 1-year cliff and 3-year schedule.


Any advice would be hugely appreciated here, thank you!

💰 Compensation
👥 Hiring
10
poweredbycaffeine
WR Lieutenant
7
☕️
The triple-triple-double-double-double myth is so fucking dead. Don’t believe them unless they are willing to show you the dashboards that project that growth.

Negotiate real dollars first, layoff clauses second, equity last. With equity you should shoot for immediate vesting at the 1-year cliff. Then 2 year schedule and last increase the equity.
CuriousFox
WR Officer
3
🦊
This is why you guru 🦡🧿
BigShrimpin
Catalyst
0
Account executive
does your goal here change based on the stage of the startup?
poweredbycaffeine
WR Lieutenant
0
☕️
It changes depending on my belief of the founders and the story they’re telling.
CuriousFox
WR Officer
2
🦊
Not my thing. I want cash in my hand up front. @poweredbycaffeine is the guru.
poweredbycaffeine
WR Lieutenant
2
☕️
I’m over equity. It’s bullshit unless the founders have sold before or there is a clear path to IPO.
unclespacejam
Politicker
2
ur dad’s brother
I gotta be honest I do not see how tf they would triple revenue this year if they are JUST hiring they’re first AE and are predominantly PLG. This would mean closing nearly $1.7M a month with virtually no sales team? I’m confused
jefe
Arsonist
1
🍁
Personally, I'd try and focus on negotiating things other than equity. Rarely does it actually come to provide any value.

WFH allowance/stipend, remote flexibility, PTO, signing bonus, benefits from day 1 etc. all have guaranteed value.
MyAnonymousName
Opinionated
1
Sales Leader
As others have said in your situation equity would be the last thing I would worry about.

I have had equity in 5 startups (or "scaleups") I worked for so far and only 1 ended up being worth more then $0, and that one was about $10k after being there 3 years. It really should only when you are getting to the VP level and get 50k+ shares.

Focus on everything jefe mentions and just let any equity be a nice bonus knowing it'll probably result in nothing.
Justatitle
Big Shot
0
Account Executive
at this stage of the org, I really would not. be that worried about equity. it's more than a crapshoot because in craps the odds are in your favor. View it as a perk like a ping pong table and not a main attraction.
NoToBANT
Catalyst
0
Senior Account Executive
Like this:

“How many shares??”

“No thank you! I’d rather take cash upfront, so I suggest a $20,000 sign on bonus or a $35,000 increase in my base.


Alternatively, I’d you’re trying to save cash right now, may I suggest the following:
- 6 weeks severance with any bonuses due
- reduced target when on annual leave

That was you keep your equity :)

Thanks”
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