M
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motoman76

SAE (Senior Account Executive)

Good Citizen
Contributor
Fire Starter

Series A Startup, AE offer with 3 comp options. Advice?

Hey Everyone,
I have an offer on the table from a Series A Tech startup in the manufacturing industry. I have been offered once and already renogotiated with the CEO with 3 options on the table. I have never worked for a startup and am looking for any advice on which of the 3 offers below would be best: 

1. $105k base, 24,000 shares. Accelerator comp plan (7% on rev up to 1.25M 10% on rev 1.25M+)
2. $115k base, 16,000 shares. Same Accelerator comp plan. 
3. $130k base, 16,000 shares, 5% flat on revenue

Thank you in advance! 


🧠 Advice
💰 Compensation
📠 Startup
12

23 comments

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TennisandSales
Politicker
9
Head Of Sales
Series A? Highest base possible always!
DungeonsNDemos
Big Shot
1
Rolling 20's all day
this, 100% of the time
poweredbycaffeine
WR Lieutenant
5
☕️
What is the average attainment of the reps on the team now? That will tell you if option one or two are smarter moves that 3. If 80% then go option 3 and shore up your cash flow with the base.

Equity is irrelevant at this stage.
motoman76
Good Citizen
0
SAE (Senior Account Executive)
There are only 2 reps currently with one at 90% attainment and one at 50% attainment. Average deal size of $60k.
poweredbycaffeine
WR Lieutenant
5
☕️
Unless you have specific experience, contacts, or skills that will get you to 100% and beyond to activate the kickers then I’d opt for 3
braintank
Politicker
4
Enterprise Account Executive
Run away. Why are they trying to fuck you over before you even started?
braintank
Politicker
5
Enterprise Account Executive
But if you have to choose, choose 3. Chances are equity won't be worth shit.
Maximas
Tycoon
1
Senior Sales Executive
That's what I'm saying..
motoman76
Good Citizen
0
SAE (Senior Account Executive)
How so?
motoman76
Good Citizen
0
SAE (Senior Account Executive)
Regarding getting screwed that is
braintank
Politicker
1
Enterprise Account Executive
Nickel and diming your offer.
Why can't they offer you best of all offers?
Diablo
Politicker
1
Sr. AE
I would always go with the highest base in a Series A. Do you know how big is the sales team, what’s the target, how much on a avg & highest performers doing in sales, what % if the team is hitting the number?
With this you can do some estimate ~ potential commissions
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
3 sounds best to me. Take the higher base.
CuriousFox
WR Officer
2
🦊
I admit I don't know much about series a places. Do they normally give you 3 options?
braintank
Politicker
2
Enterprise Account Executive
No, this is odd and in my opinion a red flag🚩🚩🚩
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Agreed with braintank, generally no.
punishedlad
Tycoon
1
Business Development Team Lead
I'd personally opt for 2 or 3, with a heavy lean towards 3.
saaskicker
Celebrated Contributor
1
Enterprise AE
Do you have info on the FMV of these said shares? Or what % of the outstanding shares this would be?
Series A is so risky so it may not matter, but worth asking if you want to factor that in. Keep in mind its 5+ years typically before any sort of liquidity event to access the comp from the shares. Are you going to stick it out?
Justatitle
Big Shot
0
Account Executive
My answer is conditional on how current sales look. If current sales are strong option 1 would be what I like the most for earning potential.
motoman76
Good Citizen
0
SAE (Senior Account Executive)
I see it as swapping $10k for 8,000 shares between option 1 and 2. Seeing as most startups fail and running the numbers option 2 seems best if at or more than $1M in revenue (my quota).
Justatitle
Big Shot
0
Account Executive
Yeah, 2 is best. Meant to say 2.
Jaytea
Catalyst
0
N/A
The quota is kinda unreasonable since they are starting out just an FYI.
Wishbone
Opinionated
0
Enterprise Account Executive
There is only one option. 3

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