Questions regarding payment for services rendered.
14
votes
9answers
375 views
Taking care of beta testers
In the development of our application, we've relied heavily on a handful of beta testers. Their input has been very, very valuable and has no doubt made our application much, much better than it would ...
11
votes
5answers
277 views
Expanding development team for a startup
I'm a software developer and co-founder of a start up that's in a sprint to launch a web app the next 2 months. We have about 3 months of burn time we have before we need to get some funding. By ...
8
votes
7answers
453 views
Web developer in project, slow going, need advice
I was approached over a year ago by a "start up" offering me 10% in the company. I thought about it for a few days and said, "Sure, why not?".
I was sucked into the dream of being a part of ...
8
votes
2answers
3k views
What is the difference between Series A, Series B and Series C investment?
What is the difference between Series A, Series B and Series C investment for a startup?
How does this affect salary and/or equity expectations if I am looking to join a startup in a ...
7
votes
5answers
648 views
If newly funded startups offer salaries which are not comparable to market rate, then how they can attract top talent and be successful?
This question is related to the question: "Do newly funded startups offer salaries which are comparable to market rate?"
Apparently, it is quite common for startups to offer salaries which are 20% to ...
7
votes
3answers
5k views
Looking to get involved with a startup, but no idea on what kind of salary/equity I should expect
I'm considering joining a startup that has raised a few million in Series A funding and I'd be the second developer joining the team. I've been out of college for 4 years and am looking for a senior ...
7
votes
3answers
5k views
What's a typical sales commission for professional services?
What's a typical sales commission for professional services?
I ask because I am thinking of going into business with some friends (professional services and product company). We agree on how to ...
7
votes
2answers
4k views
What is an appropriate stock option grant for a senior engineer after the Series A?
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 ...
6
votes
5answers
321 views
Founder is responsible for sales and wants incentives in addition to our equal compensation
My partner is the founder and I am the co-founder of our company. He has a sales background and I have operations.
We agreed for him to have more equity (50/30) as the company/products were his ...
6
votes
7answers
507 views
Potential offer as first employee at startup, worth it?
I am a software engineer with about 2 years experience and currently at a big tech company. I have an offer to join a startup that has just received seed funding of 250k and they're about 6 months ...
6
votes
5answers
1k views
Stock options for a senior engineer at an angel funded startup?
I joined a startup 6 months after its founding as a junior engineer (I was right out of college at the time). I've been with the startup for almost 6 years now, and I've progressed to the point of ...
6
votes
2answers
258 views
Is there an inbetween step between “a trial period” and “co-founder”?
Greetings,
I am planning on joining a start up with someone as a co-founder and right now we're in a hurry to get product off the ground. I've worked with this person in
a trial period and I ...
5
votes
9answers
1k views
How can I have people work for my start-up if I have no way to pay them?
I would like to know how I can have other people to work for me.
5
votes
3answers
1k views
What is the appropriate equity % for software bootstrap key employees?
I have been working with a start up without pay for the last 8 months.
I have been a senior sales executive with tier one companies for the past 20 years. My position is to build and manage all ...
5
votes
2answers
1k views
Compensation for co-founders and employees in a startup
In my earlier venture attempts, the scenario was something like 3 guys, each of whom would get 33.3%. I found out soon that this was silly because as soon as one of us lost interest, he could do ...
5
votes
1answer
157 views
Estimating Sales Compensation
I've been operating under the assumption that I want to set the commission rate for my commission only sales reps based on: (# of sales) * (average deal value) * (r) = compensation or r = c/(N*V). c ...
5
votes
3answers
3k views
Stock options/salary for VP of engineering at series B startup?
I am trying to understand the right compensation for VP of engineering at a series B company with $10+M revenue in 2010 with plans to double it in 2011. The company is 5+ years old and has gone ...
4
votes
2answers
2k views
Is it typical to trade salary for equity when joining a startup?
Suppose I got an offer from a startup that currently has funding to start hiring employees. Suppose they are offering a $100K total compensation package, such that I can choose to take a reduced ...
4
votes
3answers
140 views
Competing With “Fair” Wages
Right off the bat, I have decided there is no way I will be able to compete in the software/IT-services world on price. There are a number of offshore organizations, for example, that provide the same ...
4
votes
2answers
242 views
Is this a fair CEO offer for an experienced CFO/COO
My question/story is this: two years ago I broke ground on a startup. We planned and planned, raised some funds and broke ground writing code. Two years later we put $250k into the business, have ...
4
votes
3answers
240 views
Asked to be CEO — what should I ask for?
I have been appoached by a private equity firm that has an idea -- a good one -- and $5M. They've asked me to be CEO and make it happen. They requested I make the opening bid for compensation and ...
4
votes
4answers
656 views
CEO Compensation
What is the average CEO compensation for a start-up - salary, bonus(es), sign-on, equity, benefits? Where can you find this information?
4
votes
1answer
693 views
The compensation equation - what's a good mix?
Here is the compensation equation, as I see it:
Equity - how much ownership one has, and when (roughly) it will be worth something
Wage - how much salary one recieves
Career - how the position ...
3
votes
5answers
393 views
Leaving an awesome startup for Big Co. Am I crazy?
I love working for my current company. The work is challenging and fun, the people are amazing, I've been given lots of opportunity, and it's just an overall great work environment.
The ...
3
votes
4answers
297 views
Founders' compensation in business plan: include it or not?
We're presenting a business plan for our startup, and I wonder if we should include our own compensation in the financial projections. I mean, our compensation is distributed on a "as-available" ...
3
votes
2answers
127 views
It is common for salaries to stay below market rate even after an initial venture round?
I am employee #1 in a startup with some substantial equity in it.
Our startup was funded by angel money and I have worked from the beginning for a salary way below market rate. Now, venture round A ...
3
votes
2answers
628 views
CEO Compensation for a Startup
For a startup that currently has no funding and wants to put a business team in place, how much equity would you give someone who would be coming on board as the CEO to take over the business side of ...
3
votes
1answer
273 views
Start up employment - Trial period with ambugious compensation, how to evaluate?
A company (pre-funding) wants to do a 3 month trial period with me. I received an offer for X shares of stock.
How do I determine if I am properly compensated for my efforts? The value I would ...
3
votes
1answer
989 views
What's a good ratio between founder equity and early employee equity?
I'm looking into the equity for the 2nd employee of an early-stage startup. I've seen lots of rules of thumbs out there (some people say 1%) but it's hard to apply because some rules of thumb refer ...
3
votes
1answer
344 views
How should I get compensated for co-founding a new company
I have been involved in a particular industry for some time, opening my company in 1983 and selling app 25 years later. I enjoy the industry and have a good grasp of how to build a successful company ...
3
votes
0answers
123 views
Equity for First paid Tech-employee in a not-profitable financed Startup
I'm trying to be as specific as possible here:
We are a Startup 5 months on the go with three co-founders. Since none of us can truly code we need to employ our first Web-developer and we have found ...
2
votes
5answers
386 views
Working as early employee but not get paid
I got hired as an early employee (employee #4) and considered as key engineer of the company. As compensation, I got some stock option grant (1%), and well below market salary (about 30% of what I can ...
2
votes
6answers
538 views
Considering an offer from a startup, two different compensation packages. Advice?
A bit of background: The two founders are guys I used to work with before our previous employer (a SaaS company) was aquired back in 2010. One of the founders was a senior sales exec and the other was ...
2
votes
4answers
263 views
What non-monetary rewards can I give to an outstanding remote worker?
I have a remote worker (He lives in South Africa, we are in Israel) in my team of 3, and I want to reward him for his awesome work. There is not enough budget to compensate him more but I still want ...
2
votes
2answers
377 views
How to (not) move ahead with my cofounder
I need some advice on how to handle the current situation with my co-founder. I am not happy working with him, we haven't signed any contracts or agreements, and he has put in a lot of hours over the ...
2
votes
8answers
1k views
20% equity and CTO. (Story and details). Is this fair?
This is a long exposition.
Please bear with me, I think that I need to provide as much specifics as possible, while keeping it as short as possible. Thanks for reading, any feedback is much ...
2
votes
3answers
736 views
Startup Compensation
Contract Engineer (mid 20's) involved in high tech startup companys. Questions!!!
Startup 1:
Currently no tentative contract agreement. Compenation has been less than statisfying, $20/hr flat ...
2
votes
1answer
164 views
How should early employees be compensated if founders have left and the company has pivoted?
I realize that Joel Spoelsky has written an extensive summary of how equity should be allocated (namely, fairly), but I was wondering how things might differ in slightly different circumstances...
I ...
2
votes
1answer
632 views
ideas for compensation contract with series B startup
Hi and thanks in advance. I've done some looking around to determine where to start with startup compensation. I work as a contractor exclusively for a startup currently in series b round, I've been ...
2
votes
2answers
881 views
How to hire a salesman?
Usually salesmen have a base pay and then commission on each sale. I want to know how a company handles this? I mean for example a salesman's basic pay is $1000 and commission ratio is 10% for each ...
2
votes
2answers
269 views
Head of Sales/BD/Marketing Equity Share for Prefunded Startup?
I'm considering joining a great team/early startup.
Founder A engineer / mba, brought the vision.
Founder B phd relevant to product
C head of Product - person poached from another company very ...
2
votes
1answer
234 views
How do I figure out how much stock to give a developer working short term in exchange for equity?
I recently participated on a team with a developer at a hackathon. The person has their own freelance business, so unlikely to join fulltime later. They expressed interest in helping with my project ...
2
votes
3answers
272 views
Please explain how equity % changes
I am a newbie to this, so any detailed answers would be very helpful.
Suppose a start-up offers x% (say 10%) of equity to an employee prior to finding venture capital. And say the founder retains ...
2
votes
2answers
489 views
Compensation: How much cash compensation & stocks for professionals being brought in
Is there a principle or guideline usually adopted in structuring compensation for a professionals being brought in to the leadership team of start up/ new ventures.
Just how much of the market ...
2
votes
2answers
166 views
Investors willingness to pay founders to enable full t-ime effort
I have read all the streams here on this topic but didn't find an answer to the following specific concern:
I am one of two founders of a new web service of an idea I first developed months ago and ...
2
votes
2answers
376 views
How can early startup employees ensure that founders do not intentionally dilute them?
I am considering joining a startup as employee #2. I expect to receive some equity (either stock or options).
Is there any way in which I can protect myself against the founders simply issuing ...
2
votes
1answer
648 views
What all-equity compensation is typical for a pre-series A startup?
I am being offered a full-time position at a start-up that has been around for 2+ years but is pre series-A. It has some angel funding.
Most likely there won't be any cash compensation (or very ...
1
vote
3answers
202 views
How can an Advisor be rewarded if there's not a VC round or Sale down the line?
A guy who's help our SaaS startup a lot in the 1st 2 month of its life has suggested that we form and he join our Board of Advisors. He's very helpful to us, a great guy and will definitely be an ...
1
vote
3answers
306 views
In evaluating a co-founder offer, how do you value the benefits of failure?
I'm a tech guy looking to join a company as a co-founder. Quite often companies are in various stages.
For example for 2 different business offers, pre-seed/pre-series A: Lets say founder A, spends ...
1
vote
6answers
349 views
Open source model for startups - is it possible?
There is an open source development model for software which is quite popular. I am wondering if this idea is applicable for startups?
Imagine there is a web based start up at its early stage which ...
