Company has been around for the past 5 years and raised $9M in Seed funding 1 year ago. Total of 15 employees - What are the questions I should really be asking regarding the health of the company to make sure it is going to be around for the next 2 years - What is a realistic TC I should be asking for in terms of base + bonus + equity. #equity #startup
- why did you hire me in this critical role when i don’t know what data to ask for to understand viabllity? - $180-$200k no bonus. equity 1.5% but they are going to offer .5
Remember that 1% of 9 million is just 90k.
When I got an offer, I asked for following: - Cash reserves, cash flow, burn rate - Current term sheet and how the deal is structured to understand real valuation - Value stocks using the discounted cash flow method with the risk in. $100K of paper money could easily go to zero. Do a risk reward analysis of cash vs. stock compensation. - Current revenue, revenue growth rate - Gross profit margin and net profit margin - Repeat customer base, customer churn, cost of customer acquisition You won't get everything in the first stage, will likely need to sign an NDA but with this info, you can build a very solid model of your expected returns for your salary at different cash - stock ratios, and compare that to a normal big tech job, which is a way lower risky pay
Would they be willing to share this information? I mean is it standard practice to share this kind of information with new hires?
Why not? I haven't had getting 70-80% of my questions asked at least when I deal with startups. Was mostly a VP of product role too. If you don't ask these questions , they will think you don't know what you are doing anyway