What would be a ridiculous percentage to ask for?

[Simon Eves]

The start-up is three guys in a garage in the North Bay, the CEO (mostly business), CTO (technical but not formally) and a "Mad Scientist" (skills unknown as I haven't met him yet).

They have $250K in convertible-note funding ($5M cap), another $250K to close this month, and another $500K intended for Q1 2015 (I don't know if they will convert to real stock at that point, or wait longer) and Series A level of funding a year later.

They want me as a Lead Engineer (I have 24 years experience) but their "placeholder" job listing on AngelList for this position would be a 40% pay cut for me, plus a general step-down in benefits (TBD), but I can hopefully negotiate more depending on the salary/equity balance.

If I did take something approaching that pay-cut, what would be a ridiculous equity ask at this stage of that company? 5%? 10%?

A friend of mine who one of 7 founders of a start-up in March got 3% (real founders' stock) for a similar position, which is already way over the "0.5-1.0%" range given in the book (and echoed on other websites I've found) but surely that only applies to bigger companies.

[pia...@gmail.com]

Basically at this stage you should be considered a cofounder, not an employee. At least 6% equity with anti dilution provisions.

Sent from Windows Mail

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