I recently met the founder of a web startup who is looking to build his management team. I would fill an executive position on that team.
Last year, the company received initial angel funding followed by additional angel funding in the last quarter of this year. The company is now looking for investors in order to raise Series A venture funding (to broaden it's customer base), and plans a Series B round towards the first quarter of 2011. The founder owns approximately 55% of the company, a significant portion is held by the angels, and the rest (10% or less) is held by a couple other employees.
At this stage in the company's existence, is there a standard approach I should look for around compensation, e.g. considering the following factors?
- Stock grants
- Receiving options vs. stock
- When is it appropriate to make my own investment in the company
- Salary, including lower-than-market salary in exchange for more ownership and assumption of greater risk vs. market-salary for less ownership, etc.
I'm not certain that I'm asking the question appropriately, but I wanted to use this as a starting point.