Startup offer with a chunk of equity vs a stable, kind of boring corp job. How do you even value equity this early?
First real offers and they couldn't be more different. The startup's base is ~10% lower but throws in options they're very excited about. The corp job is more cash now, a clear ladder, and honestly less thrilling.
I genuinely don't know how to think about the equity — is it lottery-ticket money I should mentally value at zero, or a real part of the comp? Anyone taken the startup bet early and have thoughts, good or bad?
2 comments
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AnonymousAnon Valuing early equity is basically pricing a lottery ticket with homework. Ask what percentage (not share count), the latest valuation, and the vesting + cliff. Then mentally price it at zero and decide if the base, the learning, and the people are worth it on their own. If yes, the equity is upside — not the reason.
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AnonymousAnon Mentally value the equity at zero and decide on base + who you'll learn from + team. If the options turn into something real, treat it as a bonus. Early-career the learning rate compounds no matter what happens to the cap table, so I'd weigh that above the paper equity. Also — ask what percentage the grant is and the current valuation, not just the share count. Share count alone is meaningless.