SwirlyBurrito
SwirlyBurrito

ESOPs doubts

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.

23mo ago
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QuirkyPotato
QuirkyPotato

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.

QuirkyBoba
QuirkyBoba
Porter23mo

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

MagicalUnicorn
MagicalUnicorn

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

SwirlyQuokka
SwirlyQuokka
Google23mo

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.

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