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Ask HN: Negotiating with an early startup

by daktanis on 6/13/14, 3:50 PM with 7 comments

So I've been offered a position at a new startup with good funding, good plan and a mvp already. I'd be coming on as the first employee to create a more robust back-end and start expanding the product.

I already have the answers for:

Is a start-up for me? Does this start-up look like it has a future?

And now I'm at, what do I ask for at the negotiating table?

I've been offered a salary about 12% less than my current, but better benefits, better working environment and room for growth.

I don't really know what protocol on asking for equity is or if I should. It wasn't brought up in the original offer so I'm not really sure on it.

Anyone have any more experience in this area?

Thanks!

  • by ASquare on 6/13/14, 4:08 PM

    Past related discussions on this topic: https://news.ycombinator.com/item?id=7772475

  • by wikwocket on 6/13/14, 4:15 PM

    Do you have interest in equity? If so, absolutely ask about it. It is one of many levers you can pull to make the offer fair and desirable for you. If you pursue it, make sure you understand their offer though. There are many "gotchas" with equity that can make it worthless.

    You mention their offer is 12% less than your current salary, but how does it compare to industry averages in your region? If they have funding and a roadmap, they may be able to pay market salaries, or even a premium for top talent. Are you willing to take a pay cut or less than market rate to do work you love/get in on the ground floor?

    Most of all, I would encourage you to negotiate whatever offer they make. Trying to negotiate never hurts, and can make a big difference. Figure out what your bottom line is, what the value you provide is, your best alternative to working for them, and then confidently ask them what they can do for you.

  • by adam-_- on 6/13/14, 4:15 PM

    Stock options or equity are one of the draws for working at a startup. Particularly as an early hire or taking a pay cut I would expect some equity. I'd be suspicious if the founders aren't offering a small amount of equity.

  • by massappeal on 6/13/14, 6:30 PM

    You may find this article by Sam Altman and the discussion that stemmed off it informative

    https://news.ycombinator.com/item?id=7610527