What is appropriate equity in a startup for employee #5?
April 24, 2009 by Debt Equity Financing
Filed under More Equity Answers
Can you answer dd83838383’s question about Equity?:
I’ve been offered a job with 0.33% equity, and I feel like that is considerably too low, but don’t have a good sense for what I should expect. Do others?
Private Equity Investment
I’ve been offered a job with 0.33% equity, and I feel like that is considerably too low, but don’t have a good sense for what I should expect. Do others?
Private Equity Investment
The level of your position and your skills are much more important factors than your employee # in determining the appropriate number of shares. How many, if any, people will you be supervising? Are you a key engineer in a technical start-up? Or, are you perhaps an experienced marketing guy that knows the industry and customer base well? These type of positions can command higher amounts, typically between 1 and 5 percent. Without knowing your potential position and how special your talents are, it is not really possible to give you good feedback. .33% may be very appropriate.