We are in the common stock series. At the moment I have been investing 32 hours a week in the startup for the past 4 months without receiving salary. I handle marketing, communications, PR and sales. The equity pool reserved for first employees is 40%. There are around 20 people working at the startup, from which maybe 6-8 invest the same or a bit more time as me. The two founders included. Thanks for your help.
I infer from your question that you haven't worked in a marketing leadership role before at a startup. "I handle ...sales." Are you Head of Sales, too? If you are, and you're actually capable of making a meaningful contribution to revenue generation, your value to the company and the two founders multiplies.
The FAR MORE important issue is why you have waited so long and invested so much in this company without summing your role, expected contribution, quantitatve objectives and milestones, and already agreed on terms reflecting whatever this aggregate value is/will be.
You've just invested 500+ hours of your life based on assumption and hope. I've personally been down your road before, and done what you did. It's not smart.
The bottom line in startup life as an employee is that cash is better than equity. So few startups translate into anything that will improve the food or eat, or pay for your kids' education that you're far better off taking a cash/equity split as Alex Crutchfield suggested. If you're really the Head of Marketing and Sales, I'd ask for a high singe-digits equity stake (not options but with reverse vesting), with 50% in salary that you can spend to live.
If you're rootless (no kids or a big financial nut every month), and are up for the adventure, you might be willing to accept less.
Answered 8 years ago
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