If you’re joining a startup as employee 4-10 primarily for the equity…don’t.
The risk/reward ratio for early employee equity is pretty skewed.
Founders - yes, they take more risk but with ownership of 20, 30, 40% the potential upside is high.
Advisors? They get 0.25%-0.5% and often contribute ideas and zoom calls. Some spend significant time and effort, many don’t.
Execs hired later on in the company lifecycle will receive equity grants many times larger than employee number 5.
So - why join a tiny startup as an early employee? Three reasons:
- You absolutely love this problem. If you didn’t join this company, you’d still be solving this issue.
- You believe 100% in these founders. Working with them will be worth it regardless of the outcome.
- You want more responsibility and agency than any big company can give you.
Many amazing reasons to join a startup - at the earliest stages, equity should only be a minor one.
More comp data here: https://lnkd.in/gEjfU6wx
#cartadata #compensation #earlyemployee #startups #equity
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