Don't expect much, if the founders raising money and they're seasonal or second time founders.
Ensure you get better cash. And negotiate hard if you are dealing with first time founders.
If you are going to hustle equal or more than founders ( I bet, you will ) then it's better you get all your legal work about equity sorted before joining.
After you are trapped, time will flow at the speed of light and owners conveniently ignore all your negotiating power.
Negotiate for a 7-10% equity atleast . You are creating a base for the startup , make sure you feel secured and motivated at the same time . If you work this hard , you might reach that $ milestone anyways within a few years. Tell the founder you are working because you are genuinely interested in the idea and to be able to give so much , you must get your share
Usually for a team member joining the core team when the size of the startup is less than 10, 0.2% to 0.8% is the ballpark.
For a business size of 11 to 50, the magnitude of ownership decreases by a decimal point to the left.
You should get fair salary but you have to understand It's the founders who takes all the risk. Specially the first time founders risk everything and you don't know the trauma of running a business where everything is at stake. For you it's just a job. You can get another but if the company doesn't make it big. It's a very big setback for the founders.
You’re taken for a ride. All that’ll be left would be burnt hands and a wounded soul :)
Sunk cost
I understand that the compensation will be tied tightly with performance, so mostly equity.
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.
