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Giacomo Balli
Innovation consultant specializing in mobile strategy
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How to get paid at a startup company - A guide to salary, equity, shares, vesting, bonuses, payout etc

Entering startup world

TL;DR: salary depends on funding (could still be high), high demand for developers, take into account different scenarios, keep things in writing, cash bonuses are hard to get, selling shares is not so straightforward, learn startup jargon.

Working at a startup is not a normal job.

A part from all the differences in energy, dynamics and attitude, there is also a completely different financial world tied to it. If you're considering joining or starting your own, you should at least skim through this.

Here's the outline:

Salary


Seed-stage Companies


Bonuses


Equity


Anecdote


Starting Simple


How Much Equity


Equity Increase


Vesting Schedules


Trading Salary for Equity


Thoughts on Equity


Benefits


Conclusion






Some good links for further reading:
Table of Option Grants
Chris Dixon on shares
Brad Feld on vesting schedules
Investopedia jargon definitions
Tony Wright on startup salary
Co-founder equity calculator
Vesting schedule calculator
Calculator For Funding And Equity
The $100 Startup - a classic
Books recommended by Tim Ferriss

via Robby Grossman.

#startup
Published: Sat, 23 Feb 2013 18:39:12 +0000