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Ask HN: Equity Offer

1 pointsby apurvakover 3 years ago
I am relatively new to the startup world. As an early employee, I am offered options at a price with a total value of X. For a company of a total of 30 employees, what is a good framework to think about my compensation? I would love to chat with someone with prior experience who might guide me in the right direction.

2 comments

SaberTailover 3 years ago
You are not being given X, you are getting paper that lets you pay X to get shares worth X. Their value is zero.<p>At best, they&#x27;re a lottery ticket. You can look at something like <a href="http:&#x2F;&#x2F;www.valuation.vc&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.valuation.vc&#x2F;</a> that uses data from other startups, to get an idea of what your odds are that they&#x27;ll ever be worth something. Usually the odds are not very good.
sethammonsover 3 years ago
generally, count equity as a lotto ticket
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