- First, know your market value (ex: 100K)
- Second, get the startup base salary offer (ex: 60K)
- Third, estimate the unpaid value: market value - base salary = update value (100-60=40K); usually the unpaid value is paid in stock with a premium
- Forth, get the last valuation of the company & number of shares total + double/tripple dipping clause details.
- Evaluate the risk factor to get the unpaid value in stock. Basically the stock option premium to ask.
- Startup phase/maturity level (risk factor to apply)
- MVP = fucken risky, a big factor is required (ex: 100)
- Market Fit exploration = Fucken risky so a big factor too (50-100)
- Market validation phase, time to scale = 2-5
- Quality of the investor and network they bring = 2-100 (vary a lot)
- Market (hype or ...) = 2-10K
- Strategic location = 2-1000 (vary a lot)
- Type of startup
- Type of startup = unicorn (big factor), etc. 1-100
- Business type, B2B or B2C : 1-100
- Type of revenue (recurrent, retension
- Data driven = 1; non-data driven (get out)
- Working culture
- Collaboration and communication culture
- Management team
- Management team, advisor experience in place = 2-1000
- Team quality: 2-1K
- CEO focus = 2-1M
- Management Mission and Vision clarity
- Delay before next founding required -> 2-1000
- Your value
- Role type = Tech has more value
- How rare is your skill = 1 to 100
- Evaluate the number of share you should claim (40k*25 = 1M; current valuation = 10M; stock = 10% ownership)
Monday, December 12, 2016
How to negociate your compensation package with a startup?
Its quite simple but most startup will make it look complex to make a better deal then you.
Posted by fraka6 at 9:33 PM