Pre-seed startup offer advice
I am getting an opportunity to join a pre seed startup as one of the initial employees (less than 8 headcount so far ). They are close to get funding of $500K for 10%. They are offering me just equity at this point , no cash component. Initial offer is 3% equity. Startup is in biotech space. Founders are veterans in that field and have demoed the product concept to multiple clients. They got good response. How should I structure my agreement with them ? Should I ask for more equity ? How to define future salary asks (post funding)? Will appreciate thoughts / pointers. YOE : 15 (dev + leadership exp) Current TC: 0 ( I can survive minimum a year without salary) #equity #startup
I would not do this until the ink dries on funding and/or you’re listed as a founder with significant equity
Thanks . What does the founding equity % looks like these days ? 10%?
not worth the risk
3% of 5M ?
pass. $500k for 10% is very expensive. 3% no salary to take on that risk is a pass. with 8 people that’s a huge offer from their perspective so there’s no way you’d be able to negotiate up. plus cap table will look like shit
Red flags here. You’re a cofounder if you’re pre-seed and should get no less than 10%.
How do they demo anything in pre-seed. Pre-seed means the startup only has an idea/concept without even a prototype/MVP.
pre seed means they haven’t taken investor money
https://www.indexventures.com/optionplan/#expected_funding_rounds_pre_exit=seed-only&employee_country=us&mode=seed