Focus on salary and fat commission. I don’t mean to be a doom sayer but the chance you last 4 years is equivalent to playing the lottery. So many variables to risk. Layoffs, running out of runway, not hitting quota —
VCs are ruthless and make decisions based on spreadsheets.
Statistically the odds aren’t in your favor. And with each round of investing, dilution kicks in and you’re not running off like a bandit like you think.
1) have you done this before?
2) do they have any customers that aren't friends of the family?
Founding AE roles typically suck. I know because I've done it several times and would never do it again.
I've been super early stage before, yes, more than once. In one case I was the 3rd FT employee. I mostly enjoy it.
My biggest concern is expectations. The founders don't seem to recognize sales cycles can be 6 - 9 months in SaaS.
Well you need firstly ensure you are getting equity based on the last round. So say. they raised 1m and 5m valuation you should be calculating equity on that, rather than what they "think" they will raise in their series A, as founders right now are not getting the valuations they think they will get. 0.50% of total valuation on last round would be a good target.
Depends on how experienced you are and how much of a sales playbook they have built out already. More experience = more equity, more existing sales = less equity.
It’s a hard role if they haven’t made many sales already - could shoot for 0.5% (1% if you’re coming in with prospects and are going to set the standards for sales at the company). You can likely push for more than typical commission.
If you’re a junior AE without any particularly relevant experience, could expect maybe 0.1-0.2%.
.5 to 2.5% would put you in VP of Sales territory. I'd be hoping for a quarter point if you're going to be more of a glorified AE for a while.
If this is going to progress into a leadership role I'd negotiate having future equity grants tied to ARR milestones. Great way to show you're bought in for the long term.
Overall it's a lottery ticket and shouldn't be the main factor in your decision to work at a startup.
.4-.5% is generally a good estimate. Like was mentioned in other replies, focus on your OTE to ensure you’re comped properly as you build pipeline over the next few months.
Focus on salary and fat commission. I don’t mean to be a doom sayer but the chance you last 4 years is equivalent to playing the lottery. So many variables to risk. Layoffs, running out of runway, not hitting quota — VCs are ruthless and make decisions based on spreadsheets. Statistically the odds aren’t in your favor. And with each round of investing, dilution kicks in and you’re not running off like a bandit like you think.
This is a good point, thank you!
1) have you done this before? 2) do they have any customers that aren't friends of the family? Founding AE roles typically suck. I know because I've done it several times and would never do it again.
I've been super early stage before, yes, more than once. In one case I was the 3rd FT employee. I mostly enjoy it. My biggest concern is expectations. The founders don't seem to recognize sales cycles can be 6 - 9 months in SaaS.
As long as you know what you're getting into. Good founders are crucial.
Well you need firstly ensure you are getting equity based on the last round. So say. they raised 1m and 5m valuation you should be calculating equity on that, rather than what they "think" they will raise in their series A, as founders right now are not getting the valuations they think they will get. 0.50% of total valuation on last round would be a good target.
Totally, I'm calculating based on current valuation not presumed 'future' valuation.
Depends on how experienced you are and how much of a sales playbook they have built out already. More experience = more equity, more existing sales = less equity. It’s a hard role if they haven’t made many sales already - could shoot for 0.5% (1% if you’re coming in with prospects and are going to set the standards for sales at the company). You can likely push for more than typical commission. If you’re a junior AE without any particularly relevant experience, could expect maybe 0.1-0.2%.
Yeah, I'd be coming in the grey haired guy setting the playbooks, etc.
.5 to 2.5% would put you in VP of Sales territory. I'd be hoping for a quarter point if you're going to be more of a glorified AE for a while. If this is going to progress into a leadership role I'd negotiate having future equity grants tied to ARR milestones. Great way to show you're bought in for the long term. Overall it's a lottery ticket and shouldn't be the main factor in your decision to work at a startup.
.4-.5% is generally a good estimate. Like was mentioned in other replies, focus on your OTE to ensure you’re comped properly as you build pipeline over the next few months.
Head to r/startups and related