If you are taking a cut ESOP should be valued at least 1.5-2x of the amount you are cutting.

If you are one of the first employees, the equation is different. You could ask for 0.1-1% of total company for the value you bring.

+1, if you’re joining in tech then you can easily strech it to 0.5%

Software Developer

Investor

Agree with 0.1-0.5% if you're early. 

A word of caution: I've seen just a handful companies ever do an IPO or buy back. 

Don't trust your esops to give a return. Ask for a higher salary in the next cycle.

Product Marketing Manager

0.5x of your CTC as ESOPs for a seed funded startup

Head Of Marketing

How much ESOPs can I ask from an early stage startup (incubated). Valuation is around 12 cr.  I have agreed to take a 50% paycut on my fixed, but not sure about ESOPs. Please advice.

Welcome to Personal Finance's Private Community

How much ESOPs can I ask from an early stage startup (incubated). Valuation is around 12 cr. 
I have agreed to take a 50% paycut on my fixed, but not sure about ESOPs. Please advice.

ESOPs doubts

Product Manager

ESOPs doubts- Grapevine

Welcome to Business Roles's Private Community

ESOPs is offered by an early age startup. What are the things I does be aware about? or ask the founders to clarify with me.

Human Resources

Welcome to Indian Startups's Private Community

Hello guys,
I would want to know what is the benefit of getting ESOPs in an early stage startup?
The startup has a great team and working on a promising product. 
I have been offered a package with somewhat lower fixed component and somewhat higher ESOPs. Need insightful pointers here. TIA :)

Value of ESOPs in early stage startups?

The ESOP is a bit of a blind bet.  
  
 It's paper money that can get you a windfall if all goes to plan and execution, solution, pricing, market readiness amongst other things, all line up over the next few years.  
  
 I wouldn't take a pay cut in lieu of ESOPs.  Keep the real money real and the paper money as an outside bet.

Sales Manager

How much ESOP's (percentage) ideally someone should hold or ask for while joining a 2-3yr old Early Stage Startup with valuation of around 25cr for the Following Positions?
 
- Tech Lead
- Head of Technology
- Director of Engineering
- CTO

How much ESOP's?

Software Engineer

I got a offer where i will get the equity. Does people really make money when company get sold considering in my case if i get 1% equity.

Also how does it work? Suppose when we start valuation of the company is 1 cr so my part will be 1L. Now in the next round suppose the valuation is 10cr then does it increase my equity to 10L or it dilute my % of equity?

Suppose if the company is sold at 100cr, do i really get 1 cr? Kindly let me know how it works and really people make money or not if it get sold.

How does equity works for founding engineer?

Engineering Manager

As a software engineer with 1.5yrs of experience, how much ESOPs shall I ask from a Seed funded startup. I am here since initial days of company.

Is it a certain percentage of valuation? What's the market standard?

Right amount of ESOPs

I have 6 years experience. My current base/fixed is 60 LPA. (I also got a 5 lakh bonus and 5 lakh of my ESOPs vested this year making my total vested about 30 lakh. So the total comp is 70). 

I'm being offered a senior engineer position in an early stage startup (as part of the founding engineer team). They haven't given an offer yet.

Being early stage, the emphasis will most likely be on ESOPs. How do I evaluate this and set my expectations? (If I were to switch to a mature company, I believe the hikes usually are between 15-20%? How does this work for early stage startups?)

Salary expectation at early stage startup

Welcome to Product Managers's Private Community

Hey folks, 
Got a full time offer as an APM and they offered: 
1. 10 LPA Base
2. 1 lakh Retention Bonus (will be given in the first month) 
3. 1 lakh ESOPS

Should I accept or negotiate for more? If I negotiate, which component should I negotiate and how much? 

Thanks in advance.

APM Fresher Salary

I’m considering joining as a founding engineer at an early stage startup who is just about to sign a $4M seed round.

They offered to match my current base and a $20,000 in ESOPs. 

When joining at such early stage companies, how should I think of ESOPs so that I can better negotiate. I’m banking on this idea going big and I want to get as much ESOPs as possible to maximise my returns in the future.

ESOPs in early stage startups

Hi, I got an offer from a Series B startup and they are giving me 3000 shares of ESOPs vested over 4 years. Right now the value of each shares are worth $5 and has a potential to grow after new funding rounds this year. I feel 3000 shares is less and want to negotiate for more. 

In your experience can anyone tell me how much ESOPs (shares) have you received from new startups? And was it benefecial in the long run?

Any input is appreciated.

How much ESOPs should I ask from a Series B startup?

Analyst

Welcome to Office Gossip's Private Community

Hello all! 
I am working as HR Head in a growth stage startup in Bangalore. So many people here talk about compensation, culture, growth etc. Happy to answer questions related to HR/Culture/Startups.

People & Culture Manager

Work as the only SPM at a seed startup in SaaS. 
Salary is 45 lpa and 12 lakhs of ESOP over 4 years . 

Only PM reporting to the CEO and we have doubled revenue in the last 12 months I have been here and contributing . 

I think I got low balled on the ESOP , appraisal discussions are around the corner and I would like to increase the ESOP 

What is the an average number ? 
Have seen the product folks report and 30lps seems to be the right number .
Looking for other similar folks to advise

ESOP and Salary advise

Eg. Seed -> Series A. What percentage of your CTC should be ESOPs across stages?

How much ESOPs do you ask for when moving to a company at a different stage?

This post is for younger minds to not fall for ESOPs as a wealth creation tool.

Why do I say that? 

ESOP pool is generally less than 10% of total equity distributed among thousand and ten thousands of employees. The share you get is miniscule. 
Founders saying that the pie will be big enough so that this percentage will matter is a hyper-optimistic prediction with nothing to back it.

You have to ideally wait till IPO to even make the miniscule amount. Very few companies buyback and fewer will do post-ZIRP 

ESOPs only give you the option to buy not right to buy. Company can in some circumstances take that right away. People in positions of power should negotiate for rights not option. 

The success rate of startups is less than 10% which means the chances of this miniscule amount is low. 

Overall, lowering your salary for more ESOPs won't make sense unless you are convinced that the startup will go big.

The ESOPs lie

Product Designer

Currently in talks with the CEO of a small international startup (less than 10 total members spread across 4 countries). My existing profile is an exact match for what they are looking for in a candidate (they are implementation partners of my existing company's software). 
I am pretty close to closing it but now he wishes to know my existing salary. I tried to avoid sharing it but he wants to know it before quoting anything to me. 
I wish to get a huge raise (80-100%) since i will be moving from a known brand to an unknown startup with all the skills they need and more from Day 1. 
Any tips on how I can handle this situation?

How to avoid disclosing current salary

Consultant

I am being offered 30% of CTC component as ESOPs (1 crore liquid pay + 30 lakh ESOPs). It's a Series B consumer tech brand. 

Are ESOPs still a thing? What should I do?

ESOPs doubts

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