Quick Answer: How Do You Negotiate Equity In A Startup?

How much equity should I ask for in a startup?

As a rule of thumb a non-founder CEO joining an early stage startup (that has been running less than a year) would receive 7-10% equity.

Other C-level execs would receive 1-5% equity that vests over time (usually 4 years)..

Can you negotiate equity?

If there’s not an equity component to your job offer, then shares probably aren’t in play. If your offer includes some equity component—stock options, Restricted Stock Units (RSUs) or other equity—then you probably can negotiate for more shares.

How do startups get equity?

A company’s stock can be divided into a potentially limitless number of shares, each worth exactly the same value. In a priced equity round, shares in the startup have a fixed price, and investors can purchase equity in the company by buying shares at the price during that round.

How much equity should I give up?

You shouldn’t give up more than 10-15% for your first $100,000 and from that point forward, you should budget between 10-20% dilution per each round of subsequent dilution. In a tech startup, you should be more nervous about dilution than control.

How much should a startup CEO be paid?

Here, the average salary for chief executives jumps significantly to over $220,000, with salaries ranging from $135,000 to $320,000. For later-stage startups that have raised between $5 and $10 million, the average salary for founders increases again to just under $176,500.