I'm looking for suggestions as I'm considering an offer from a startup.
A friend of mine is founding a software startup together with two partners and he's looking for engineers. The idea is convincing. There's a prototype built by one of the founders, and round A financing just completed. Acording to them, the company will be owned 60% by employees and founders, 40% by investors. My friend is talking to me and a few other people which I know, to form the core dev team and build a solid product. We are all senior software engineers at a large US software corporation. Eventually they're planning to hire more junior developers to gain traction and deliver faster.
The compensation they're offering is fine cash-wise, but I'm trying to figure out if the stock option offer is on par with what I would expect from other startups. Recently I read lots about startups; many blogs and articles point out that a reasonable stock offer for a senior engineer joining at the early stages post-round A is between .3% and .7% of the total equity. These guys are only willing to offer .25% and say that anything higher is VP-level compensation.
Are they being stingy or am I being unreasonable asking for .5%?