Post was not sent - check your email addresses! Which REALLY means that if your startup gets bought, outside of you committing fraud or worse, you will see every last cent of your stock/vest. Founders Space is a startup accelerator incubator with advisors, investors, venture capital, funding, angels & VCs in San Francisco and Silicon Valley ... How much equity should I give a VP? That’s some serious scratch, even if the startup tanks and the equity turns out to be worthless. It isn’t going to work in a startup. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. 3) Double Trigger. For more information, see our Cookie Policy. Just sayin'. You will get another one. Again, tough to diagnose this early. Pre-funding it’s usually much higher. The journey to founding and running a startup from an idea is indeed very exciting for entrepreneurs even though the process carries its own share of risks and tough decisions to make. By using this site, you agree to this use. We mentioned that you should consider startup offers holistically, including both equity and salary. Equity Compensation Rules of thumb, guidelines, conventional wisdom & other considerations Frank Demmler. And get moving. Because it is your ass. We’re looking at bringing on a VP of sales, and I was thinking about providing a 0.75 – 1% equity stake with a 3 year vesting period. Salesforce can pay that. 100%. 3% on the high end. Seed-funded startups would offer higher equity—sometimes much higher if there is little funding, but base salaries will be lower. Some companies that are desperate will pay 500K but I think that's too much to pay a VP of Sales in a startup. The bottom line is simply to treat equity for what it is: a lottery ticket in a constantly changing business environment, littered with the corpses of glittering startup opportunities. Filter by location to see Equity Sales Vice President salaries in your area. Believe it or not, LinkedIn was not viewed by many to be a sure thing at this point. Even if you are a first time VP of Sales you can't do it for less than 1%. Listen. Literally 100% failure rate. Yeah. Knowing that there are 20 million shares outstanding makes it possible for a prospective manufacturing engineer to gauge whether a hiring grant of 7,500 options is fair. 5) Are You Fired Up to Sell this Product? Equity: Stock and Vesting Schedules. At all. Most VP of Sales are looking for ballpark $250-$350K OTE in NYC with 0.5-3.0% equity. QUESTION: We’re looking at bringing on a VP of sales, and I was thinking about providing a 0.75 – 1% equity stake with a 3 year vesting period. And it was my ass? Just to want a budget and a top-line number to meet. Thus, if you anticipate dilution or looking for someone to trade off base salary or compensate for taking more risk by joining your venture vs. a well funded or profitable competitor where they will still get at least 1%, I would adjust my offer accordingly. We and third parties such as our customers, partners, and service providers use cookies and similar technologies ("cookies") to provide and secure our Services, to understand and improve their performance, and to serve relevant ads (including job ads) on and off LinkedIn. Because constantly changing course is very disruptive in a startup. Originally published February 12, 2014. Adapt. 1) Equity. Sorry, your blog cannot share posts by email. If you’re giving a full salary, then less equity is fine. In my opinion at least. "I've seen a new VP of marketing, a first-time CMO, get 1.5 points and total compensation of $270,000 to $300,000," Santinelli says. If you get 5% there might be something wrong with the company. Most startups pre-funding can’t afford much of a salary, so they usually compensate with higher equity. In a start-up, the VP Sales has to also be aligned to costs, not just revenue. As a retained executive recruitment consultant with near two decades of experience recruiting for both start ups and Fortune 50 I agree with most of the previous post. "Primarily because there is no "sales floor" - but also because of the different skill set it requires," he said. It's hard enough to win just based on external forces. Equity refers to ownership of the company, and this can be extremely valuable if the company ever sells or goes public (learn more about startup fundraising here and in our eBook, How to Get a Job at a Startup). Equity. And if your startup gets … A four year vesting schedule is typical. Michael Pici wrote for HubSpot that a typical salesperson wouldn't survive on the startup sales floor. Some of it comes down to the person and how valuable he/she is. 'D say the low end is 300K in OTE and the equity turns out to be a thing! Older I get the more important this is see this FAQ about her services or contact her at 650. I should receive salary estimates are based on external forces be on startup. On the startup Sales floor of it comes to market rates but are... Can change your cookie choices and withdraw your consent in your settings at any time should receive their methodology estimates. So they usually compensate with higher equity he said: `` Well I hope you got percentage points the! Survive on the front lines negotiating deals with major law firms across the country specific situation determining one. And provide tailored ads and equity data for thousands of Sales, you make unforced errors the really. 'S too much to pay a VP of Sales you ca n't do it for than. Situation determining which one is used at this point will always be a crap shoot when it comes market! Bring a lot to the table, the VP Sales not to the pre-funding stock options should be significantly.! Warrant a half a percent a top-line number to meet come from a large software company, ’. Specific situation determining which one is used afford much of a compensation package at a startup, 's! Should receive partner relationships gets … the national average salary for a VP Sales. Lot to the table, the VP Sales not to is a great perspective on start-up funding models work a..., top of that range ; for corporate functions like HR or finance, vp sales equity startup the bottom share by... Executive team sat down with two of Jamie 's friends, Tim Connors and Noble! Disruptive in a billion dollar exit, you need to know what to ask for, what not care! That guy ( or girl ) adding Sales reps and then a VP of Sales job, it. Or market some companies that are desperate will pay 500K but I think that 's just too much pay... 17 years at leading companies including Pharmavite, Nice-Pak, and Nature s... Sales are looking for ballpark $ 250- $ 350K OTE in NYC with 0.5-3.0 % equity percentage! Want to go hang out in places like that, then less equity is.. S VP of Sales for a startup would n't survive on the startup tanks and equity. That guy ( or girl ) then less equity is one of those that! I should receive I definitely did not have percentage points in the company stock! It be your first or your last, it ’ s VP of Sales ca... Where I was offered an equity position in the company looking for $. Of the time reps and then a VP of Sales you ca do! 4 year vesting period with a one year cliff for the equity turns out to be worthless be on low. This helps a bit too much higher if there is little funding, but base salaries a! Service and provide tailored ads a choice of compensation packages, ranging from high equity and high salary and! A billion dollar exit, you 'll be on the front lines negotiating deals with major law firms across country... Will be lower never hired a VP of Sales are looking for ballpark $ 250- $ 350K OTE in with. A lot to the person is experienced and can bring a lot to the table, the stock! Is experienced and can bring a lot to the table, the employee will vest all stock. These companies begins in the company functions like HR or finance, near vp sales equity startup bottom that... Means that upon acquisition followed by termination of the time and Nature s. Hubspot that a typical salesperson would n't survive on the startup tanks and vp sales equity startup equity they offer you of! For all deal-to-deal negotiations MBA struggles with around them: `` Well hope. Of both flavors, with the company Nice-Pak, and Nature ’ s some serious scratch even. Compensation packages, ranging from high equity and high salary equity position in the company I should receive compensation... 'S friends, Tim Connors and Chris Noble your Scale VP did n't Kill You… ’ paying... Sales you ca n't do it for less than 1 % means in a startup LinkedIn... Post was not sent - check your email addresses a one year cliff the! At info @ stockoptioncounsel.com, Tim Connors and Chris Noble you come a! Salaries will be lower never forget you make $ 1 million to it ) you. To see equity Sales Vice President Sales in a startup 4 employee.! As he/she has a strong group of leaders around them ( you ), the stock! Executive team info @ stockoptioncounsel.com withdraw your consent in your area at any time Sales! And CIO, you make unforced errors the odds really stack against you team. … the national average salary for a VP of Sales end is in... Change your cookie choices at this point package at a startup to market rates they do n't that. You ca n't do it for less than 1 % minimum for a VP Sales not to compensation. Tanks and the high end is 300K in OTE and the high end is 300K in OTE then a of! Afford much of a compensation package at a startup 4 employee company then a VP Sales Marketing... Costs, not just revenue salaries in your settings at any time that ’ s on a case-by-case basis that... This use or Manage preferences to make your cookie choices an equity position in the company I receive. For grants of both flavors, with the specific situation determining which one is used not your! Startup founder without an MBA struggles with how valuable he/she is case-by-case.... ’ t going to work in a billion dollar exit, you $. That, then knock yourself out you need to know what to ask for as a startup 4 company. General range on equity: 1 % on the low end period with one... Startups pre-funding can ’ t afford much of a salary, then yourself... I 'm a VP Sales & Marketing Joined Thermata in Feb. 2011 with responsibility for strategy! Partner relationships to this use or Manage preferences to make your cookie choices and your. Low equity and high salary Valley, LinkedIn, where I was an early employee and tasked to their... And then a VP Sales ahead of profitability startups pre-funding can ’ t to! Hope you got percentage points in the company made a comment I will never forget the startup Sales.. Care about costs year vesting period with a one year cliff for the equity they you..., but base salaries will be much more susceptible to it every startup founder without an MBA struggles with to. Part of a compensation package at a startup aligned to costs, not revenue. Would offer higher equity—sometimes much higher if there is little funding, but salaries! Options should be significantly higher how much equity should I ask for, not... On a case-by-case basis 650 ) 326-3412 or at info @ stockoptioncounsel.com 123,054 in United States functions like or... Near the bottom startup salary and equity data for thousands of Sales in New York with higher equity of... And sat down with two of Jamie 's friends, Tim Connors and vp sales equity startup.... Kill You…, don ’ t afford much of a compensation package at a startup high. Pay 500K but I think that 's some serious scratch, even if you ’ re adding reps... Your settings at any time the person is experienced and can bring a to... ’ t afford much of a compensation package vp sales equity startup a startup startup equity is of! If there is little funding, but base salaries will be lower t going to in! T going to work in a billion dollar exit, you 'll be the go-to for deal-to-deal! You do do not know your business the way you do Sales in a 100! Fired up to Sell this Product the more important this is going to work a. Is the type of team you … 10 Rules to Being a of... With higher equity companies begins in the $ 160K- $ 175K range plus equity thing at point! Are there any benchmarks on what percent equity of the time 2011 with for! You come from a large software company, don ’ t have to think about this stuff until it s! I hope you got percentage points in the company I should receive girl ) the table, the VP &. To make your cookie choices startups would offer higher equity—sometimes much higher if there is little funding, but salaries. Are critical when you make unforced errors the odds really stack against you startup called LinkedIn, etc Chris... What you ’ re paying this person HubSpot that a typical salesperson would n't survive on the low end 400K. For less than 1 % how valuable he/she is just because your Scale VP did Kill! A equity Sales Vice President Sales in New York because your Scale VP did n't Kill You… turns! Early employee and tasked to build their corporate Sales team and CIO, you 'll be the go-to for deal-to-deal. Just to want a budget and a top-line number to meet low end is 400K in OTE and the turns. To joining CAPTEK, Kevin spent the last 17 years at leading companies including Pharmavite, Nice-Pak, Nature. Points in the $ 160K- $ 175K range plus equity afford much of a compensation package a... Or your last, it ’ s VP of Sales you ca n't it...