Author Topic: Should I negotiate if they plan to raise my salary within next round of funding?  (Read 774 times)

sizzlinkola

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I just received an offer for 85K salary, 0.50% equity. They're a seed-funded startup and are closing out their next round. My base will increase to 110k and they anticipate it'll be within 45 days. This was all in the written offer.

My expectations was 90-100k, but if it'll increase to 110k - I'm more than happy. However, what if they don't close out or one of their deals go bust? Then I'm stuck at 85k.

How should I proceed with this?

Montecarlo

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I’d by curious to see what others think, but I feel you should expect financial uncertainty with a seed-funded startup.  I doubt the founders will have any sympathy.

Maybe try to negotiate a little more equity?

Edit to add - nothing wrong with asking for 90 to start either.

use2betrix

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Need more history...

What’s your current salary?
Are you employed?
Do you like your current job?
What other considerations are there?
Benefits compared to current job?
Difference in travel?

You need to have a set amount you will accept and draw a line in the sand. Everyone needs to have a breaking point where they are willing to walk away from a job offer. That will either A. Get them what they want, or B. Not involve them accepting a job for less than they want.

I worked a job a few years ago where I negotiated 50 hours/wk (hourly) while everyone else only worked 40 hours. It pissed a bunch of the long term guys off that I was working the overtime. I made my point very clear, “the difference is, I would not be working this job if I was only working 40 hours.” And it was true, that was my cutoff point. If they wouldn’t have guaranteed my 50 hours, I would not have been working that job.

terran

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Based on the title I was going to say money in the actual paycheck is all that matters, promises about what will happen don't mean anything, but since it's in the offer letter, I guess that's just as firm as any offer of employment at a certain salary, so I just don't know. I'll also be curious to see what others say.

sizzlinkola

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Based on the title I was going to say money in the actual paycheck is all that matters, promises about what will happen don't mean anything, but since it's in the offer letter, I guess that's just as firm as any offer of employment at a certain salary, so I just don't know. I'll also be curious to see what others say.

Being in the offer letter, it leads me to believe they'll strive to keep their side of the bargain. You never know though in the startup world.

Need more history...

What’s your current salary?
Are you employed?
Do you like your current job?
What other considerations are there?
Benefits compared to current job?
Difference in travel?

You need to have a set amount you will accept and draw a line in the sand. Everyone needs to have a breaking point where they are willing to walk away from a job offer. That will either A. Get them what they want, or B. Not involve them accepting a job for less than they want.

I worked a job a few years ago where I negotiated 50 hours/wk (hourly) while everyone else only worked 40 hours. It pissed a bunch of the long term guys off that I was working the overtime. I made my point very clear, “the difference is, I would not be working this job if I was only working 40 hours.” And it was true, that was my cutoff point. If they wouldn’t have guaranteed my 50 hours, I would not have been working that job.

Very good points, thank you. Looking at the offer compared to my previous job, it's a huge step up in compensation, benefits and most importantly - responsibility and passion for the work. Yes, the compensation isn't $90-100k but I wouldn't say $90 is my breaking point. I guess I don't have much leverage for negotiating...

2sk22

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Startups work best in my opinion either if you are very young and have no assets at all or if you're financially independent. I made the mistake of joining a (very well funded) startup in my late 30s. After four tough years (I managed a team and had small children) I finally quit and went to work in a big company.

That said, the salary offered by your company seems decent - if you're not in a HCOL area. Also the equity they are giving you seems line with what I've seen in tech startups. I was given nearly 1% equity but that was because I was the very first employee and signed on at a very early stage.

use2betrix

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Based on the title I was going to say money in the actual paycheck is all that matters, promises about what will happen don't mean anything, but since it's in the offer letter, I guess that's just as firm as any offer of employment at a certain salary, so I just don't know. I'll also be curious to see what others say.

Being in the offer letter, it leads me to believe they'll strive to keep their side of the bargain. You never know though in the startup world.

Need more history...

What’s your current salary?
Are you employed?
Do you like your current job?
What other considerations are there?
Benefits compared to current job?
Difference in travel?

You need to have a set amount you will accept and draw a line in the sand. Everyone needs to have a breaking point where they are willing to walk away from a job offer. That will either A. Get them what they want, or B. Not involve them accepting a job for less than they want.

I worked a job a few years ago where I negotiated 50 hours/wk (hourly) while everyone else only worked 40 hours. It pissed a bunch of the long term guys off that I was working the overtime. I made my point very clear, “the difference is, I would not be working this job if I was only working 40 hours.” And it was true, that was my cutoff point. If they wouldn’t have guaranteed my 50 hours, I would not have been working that job.

Very good points, thank you. Looking at the offer compared to my previous job, it's a huge step up in compensation, benefits and most importantly - responsibility and passion for the work. Yes, the compensation isn't $90-100k but I wouldn't say $90 is my breaking point. I guess I don't have much leverage for negotiating...

You always have leverage for negotiating and I would always suggest continuing to negotiate as long as you are confident you aren’t pushing it at an unreasonable level in which they may completely withdraw the offer altogether.

I hired a gentleman earlier this year and my hands were tied on the max pay range, which is what I was offering. He tried for weeks for more and more. He was getting so unreasonable about it that I would have completely withdrawn my offer had he not had past relationships with other personnel at work that vouched for him. He was being completely absurd and after someone makes it very clear “this is are max, take it or leave it,” then after a certain point, they mean exactly what they say.