CoNotes

How to evaluate a startup job offer

Posted on July 24, 2008 0 Comments

The guys over at Venture Hacks have written a pretty good list of things to think about or find out once you have an offer from a startup.

Some of the items may be hard to find out, but are very important for you to think about. I would say that #10 is the most important by far. A good leader will reflect his/her traits in the decisions that affect the other items on the list.

I’m paraphrasing their list, but for the full text, go here: I have a job offer at a startup, am I getting a good deal?,

I have a job offer at a startup, am I getting a good deal?

1. Get your offer in writing

2. Fair compensation is something inline with what other competitors are paying. Do some research.

3. Look at the terms of your options to determine their worth.

4. Don’t worry about what % of equity your options will vest into…worry about their value (See #3).

5. Can I exercise my unvested options early?

6. Find out how much “runway” does the company have (e.g. how much cash does it have in the bank and how long will it last for). This is a good estimate for how long you can expect to be guaranteed a salary.

7. Ask how much the company’s post-money valuation was in the last round.

8. What cash out preferences do the investors have?

9. Find out who is on the board and why.

10. Think about if you believe in the CEO and board of the company.