Equity negotiation
Hi I am working in a pre-seed startup. The product is good and the industry has scope to grow. I am their first hiring, as well as the only Backend Engineer till now. I am about to complete 1 year. Company's current valuation is 2M at 11% and I have recieved 5Lakh as Esops vested in 4 years in last year's CTC. I want to negotiate for a direct equity handover apart from my ESOPS at Uniocorn valuation of the company with my CTO in coming months like 1% equity. I want to ask if anyone else had done such contract with their founders and negotiation tips to succeed with negotiation
I want to know what are the Industry Standards for such negotiation in India.
Employee size of the company is 8, 2 FTE in engineering and 2 junior devs are about to join next month.
Kalan Hyrum
Stealth
a year ago
Yes good idea.
Please do the discussion with the cto.
Start with 3% and let the other party negotiate down to 1%.
Tell them you want to commit your next 4 yrs, giving up opportunity cost and the company hasn’t reached seres A (so no strong pmf).
Tell them you are also giving up good cash comp in favour of equity for add long as seed round (take this in writing).
Tell them why you are dependable with evidences.
Good luck.
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