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Working for a startup (or how I am about to turn my life upside down) - Page 4

post #46 of 51
You are being bulldozed. And played for a fool.

OTOH, if you don't have any other job/any other options, I don't guess you have anything to lose.

Quote:
Originally Posted by feynmix View Post

I brought up equity into the equation: They say that it doesn't make any sense for them to give me equity straightaway (since I don't have the experience or the sales track record), but that they are willing to give me a chance to see what I can do.

If your equity grant only vests after meeting certain targets, then it doesn't cost them anything up front. At this point your salary costs them more than the equity; as it effects their cash burn rate, while their equity is worthless.

Quote:
They are willing to give equity after a certain time period, if I meet expectations (this is tough to set) and reach certain goals (also difficult to set). Besides, they will probably be backed by a VC by the end of the year and so getting any sort of equity after that would be tough.

They are willing to give it to you after a time period/trial run, but by the end of the year they will have VC funding and won't be able to give out anymore equity Repeat that to yourself a few times.
post #47 of 51
At this juncture I would have to agree; they're trying to get a fully qualified staff member to relocate on a risky platform for zero financial incentive. I would say that this is a case of not all that glitters being golden.
post #48 of 51
Quote:
Originally Posted by feynmix View Post
In terms of salary, they are willing to pay Indian market rate salary (salary is OK, comparable to say making ~55k in NYC).

It sounds like these guys want you to drop whatever you are doing, move to India, and work for an unknown company for $20k USD (or whatever it works out to). Oh, and they have no idea if this idea will be successful (unlikely) and just have zero idea what they are doing.

I don't see how this benefits you in any way. Work on school, or if you want it bad enough, start working for yourself.
post #49 of 51
I think it only benefits if you have zero other options, or are just comparing it to working as a waiter or whatever. It will certainly look better on your Bschool apps than 'barista,' but this is not a serious offer. Or, they are seriously trying to get as much from you for nothing, and are not looking out for you in any way.
post #50 of 51
Wow lots of good comments/advice in this thread.
Quote:
Originally Posted by feynmix View Post
My buddy and I first did a large portion of the leg work when the company was just a project, so I know the product and I have been "in" on it since the beginning.
Let me add my voice to the chorus here. I am suspicious of their reluctance to offer any structure for vesting of equity, particularly when it costs them nothing up front, and clearly could be tied to your value-add. It also seems they are unconvinced of your ability to add value, in spite of the fact that you say you were integral to the project/product in the initial stages. This I find strange. How long have they been doing this for? I am surprised that they are unable to identify sales milestones, for vesting of equity or otherwise. Have they not yet been able to determine sales goals based on their current market penetration? If they know they have a need for someone to increase sales, they should have at least a ballpark for these targets. I would be just as wary of a startup that may not have a handle on their pro forma as I would be of one that won't offer equity.
post #51 of 51
Quote:
Originally Posted by highball View Post

How long have they been doing this for? I am surprised that they are unable to identify sales milestones, for vesting of equity or otherwise. Have they not yet been able to determine sales goals based on their current market penetration? If they know they have a need for someone to increase sales, they should have at least a ballpark for these targets. I would be just as wary of a startup that may not have a handle on their pro forma as I would be of one that won't offer equity.

Good point.
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