You will get another one. ... Startup equity dilution by the numbers. Listen. But it depends on what you’re paying this person. Just to want a budget and a top-line number to meet. In my opinion at … But if a head of sales or VP of marketing joins once a startup has a product to sell and promote, they may get between 1% and 2%, depending on experience. So if you want to go hang out in places like that, then knock yourself out. Some of it comes down to the person and how valuable he/she is. Because it's your ass.". Which means: If you get acquired and the acquiring company cans you, you immediately accelerate vesting on any unvested stock you have left. Learn. Knowing the amount of investors, the number of rounds, and the growth potential can help you determine if your equity offer is fair, as equity can become diluted as more investments are made and more employees join. We mentioned that you should consider startup offers holistically, including both equity and salary. 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. That's some serious scratch, even if the startup tanks and the equity turns out to be worthless. Prior to joining Thermata, Mr. Musselman founded Mobius Energy LLC, a renewable energy consultancy that developed manufacturing equipment for … Search Vice president sales jobs in New York, NY with company ratings & salaries. 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. What kind of team are you inheriting? Gut reaction: Anywhere from 0.5% to 1.5% of fully diluted equity depending on how core the VP position is to the company's success. "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. Again, tough to diagnose this early. At all. 2) Compensation. Almost 10 years ago I was at a wedding for my good friend Jamie Tilotta (now Jamie Tilotta Green, one of the best executive search folks in the Valley) in Puerto Vallarta. How to Screen: This is a very hard quality to screen for – you should try to get a sense of their mission and goals in an informal interview. Please see this FAQ about her services or contact her at (650) 326-3412 or at info@stockoptioncounsel.com.. Based on what I’ve seen in the past, 0.5% to 3% is typical for an experienced VP post Series A funding. VP level hire at a venture-backed, high-growth startup is typically in the 0.5% - 2.0%, with the understanding that you are there to own your vertical and build an organization that scales from product-market fit … Pre-funding it’s usually much higher. He said: "Well I hope you got percentage points in the company. For founders and CEOs who've never hired a VP of Sales, maybe this helps a bit too. Smarten  up. A great startup VP of Sales is someone who’s willing to hustle, work long hours and handle responsibilities they’re not particularly excited about. Startup equity is one of those things that it’s fair to say every startup founder without an MBA struggles with. Practical example of what not to do: You come in to a startup without a double trigger, crush it for 10 months, which prompts some bigger company to acquire you at 11 months, then they decide they don't want you on day 360. Startup equity incentive plans typically allow for grants of both flavors, with the specific situation determining which one is used. Founders’Pie Getting started correctly is critical! Filter by location to see Equity Sales Vice President salaries in your area. 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. Team Building & HR                      Equity will always be a crap shoot when it comes to market rates. As a jumping-off point, you can ask for the upper bound of both equity … But again, it’s on a case-by-case basis. 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. Are there any benchmarks on what percent equity of the company I should receive. VP Sales & Marketing Joined Thermata in Feb. 2011 with responsibility for market strategy and customer and strategic partner relationships. Venture Deals is a great perspective on start-up funding models. Even if you really, really want your first VP of Sales job, if the product is completely uninteresting to you...just don't do it. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. In a start-up, the VP Sales has to also be aligned to costs, not just revenue. But if you are going to live, breathe, and own the next 4 years of this company's revenue life...you have to be all in. Even if you are a first time VP of Sales you can't do it for less than 1%. So long as he/she has a strong group of leaders around them. Both 50/50 base to variable. Don’t let your startup negotiation partner monetize it - ask for your full market value in cash unless you’re the type who likes to … 4) Generally, is the Founder/CEO Strong Enough to Make Decisions That Aren't Driven by Outside Pressures (Board, Stock Market, Other Startup Valuations, Whichever Book they Read Last Night, etc). By using this site, you agree to this use. And so on. Both were VCs. You can't fake this. Most people don’t have to think about this stuff until it’s really important. I definitely did not have percentage points in the company. 5) Are You Fired Up to Sell this Product? What are the dealbreakers? Another important factor to consider is the type of team you … Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. Other senior roles may warrant a half a percent. Salespeople are stereotypically competitive, hungry and cash-oriented, but like any employee at a startup, equity can play a … But if you’re starting to freak out about who gets what slice of your startup pie, take a deep breath, calm down, and get ready for Startup Equity 101. How much equity should I ask for as a startup’s VP of Sales? Get the double trigger. Michael Pici wrote for HubSpot that a typical salesperson wouldn't survive on the startup sales floor. Yeah. 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. But when you make unforced errors the odds really stack against you. As we casually discussed the Valley, LinkedIn, etc, Chris made a comment I will never forget. I’m in a similar situation. Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. The older I get the more important this is. Some companies will offer a choice of compensation packages, ranging from high equity and low salary to low equity and high salary. Tom Matta is the VP of sales at eShares, a software platform that allows investors and companies to manage cap tables and grant stock certificates digitally. Leo Polovets created a survey of AngelList job postings from 2014, an excellent summary of equity levels for the first few dozen hires at these early-stage startups. As VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. "Primarily because there is no "sales floor" - but also because of the different skill set it requires," he said. I was not even a VP yet. We’re pre-funding right now. Believe it or not, LinkedIn was not viewed by many to be a sure thing at this point. 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. 1,381 open jobs for Vice president sales in New York. 10 Rules to Being a VP of Sales in a Startup. Equity. And it was my ass? Starting base salaries for a VP of Sales at these companies begins in the $160K-$175K range plus equity. But first time founders will be much more susceptible to it. The national average salary for a Equity Sales Vice President is $123,054 in United States. 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. If you get 5% there might be something wrong with the company. Sorry, your blog cannot share posts by email. As a rule of thumb, a VP of engineering or head of sales who joins at the earliest stages might get between 1 percent and 2 percent. However, for start-up software or software as a service companies (SaaS), pay incentives often come in the form of stock/equity for player/coach roles. Oh I had so much to learn. 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. Attorney Mary Russell counsels individuals on startup equity, including founders on their personal interests and executives and key contributors on offer negotiation, compensation design and acquisition terms. I will say 1% minimum for a member of your executive team. Just sayin'. Seed-funded startups would offer higher equity—sometimes much higher if there is little funding, but base salaries will be lower. You get nothing. Equity is often the most confusing and intriguing part of a compensation package at a startup. by Naomi Kokubo, Cofounder of Founders Space. Most startups pre-funding can’t afford much of a salary, so they usually compensate with higher equity. One of the most difficult decisions you will have to make as a founder is how to distribute equity among your co-founder(s) and earliest employees. With that in mind, you need to know what to ask for, what not to. I'd say the low end is 300K in OTE and the high end is 400K  in OTE. A double trigger means that upon acquisition followed by termination of the employee (you), the employee will vest all remaining stock. Because it is your ass. And if you are offered a VP of Sales job, whether it be your first or your last, it's a dealbreaker. Because constantly changing course is very disruptive in a startup. But your founder just made $100 million. I was still relatively young in my career. For a head of engineering, top of that range; for corporate functions like HR or finance, near the bottom. I was with a startup called LinkedIn, where I was an early employee and tasked to build their corporate sales team. Don't be that guy (or girl). Prior to joining CAPTEK, Kevin spent the last 17 years at leading companies including Pharmavite, Nice-Pak, and Nature’s Bounty. Let go of what you know. It’s natural for a VP Sales not to care about costs. But sales is sales. It isn’t going to work in a startup. I'm a vp of sales for a startup 4 employee company. Because, lets be honest, if you are truly successful, your CEO, investors, etc, are going to to be VERY happy about it and they will reap some serious reward. Because the company needs to be able to sell the appropriate shares to the employee once the options are exercised, those shares (1) need to exist, but (2) be reserved so that they are not sold to anyone else. Post was not sent - check your email addresses! … As VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. Is this about right? Most startups have a 4 year vesting period with a one year cliff for the equity they offer you. In a billion dollar exit, you make $10 million. If you come from a large software company, don’t implement their methodology. ... VP Sales -Founder 175k-200k 175k 0-60k 1.2-5% 3.5% VP Business Dev -Founder 150k-180k 170k 0-35k 1.5-5% 3.0% VP Marketing -Founder 140k-180k 160k 0-30k 1.3-7% 3.0% Salary estimates are based on 11 salaries submitted anonymously to Glassdoor by Equity Sales Vice President employees. Salesforce can pay that. Equity negotiations can be a cause of disagreements and … Equity Compensation Rules of thumb, guidelines, conventional wisdom & other considerations Frank Demmler. A startup sales job sounds exciting, but the VP of Sales in a startup is a world away from a VP of sales at an enterprise company. This is a real thing. See our, Just Because Your Scale VP Didn't Kill You…. Equity: Stock and Vesting Schedules. And get moving. 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. Explore by role, location, skill, or market. In my opinion at least. Adobe can pay that. 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? This website uses cookies to improve service and provide tailored ads. 100%. 3% on the high end. That’s some serious scratch, even if the startup tanks and the equity turns out to be worthless. 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). 0.1% of your company is probably not equal to 0.1% of another company, so you need to help every candidate understand the potential value of the equity you’re offering them without making promises. If the person is experienced and can bring a lot to the table, the pre-funding stock options should be significantly higher. Adapt. They don't know better than the founder the vast majority of the time. Also, the employee will be taking significant dilution upon funding, so you want their equity to be enough to motivate them both pre and post funding. It's hard enough to win just based on external forces. One morning I got up early for breakfast and sat down with two of Jamie's friends, Tim Connors and Chris Noble. And if your startup gets … Literally 100% failure rate. Some companies that are desperate will pay 500K but I think that's too much to pay a VP of Sales in a startup. “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. Most VP of Sales are looking for ballpark $250-$350K OTE in NYC with 0.5-3.0% equity. RSS 2.0 feed. But in a startup, that's just too much. Startup salary and equity data for thousands of sales startup jobs. Outside influences do not know your business the way you do. General range on equity: 1% on the low end. For more information, see our Cookie Policy. But costs are critical when you’re adding sales reps and then a VP Sales ahead of profitability. I was offered an equity position in the company. Great advice! Even if you are a first time VP of Sales you can't do it for less than 1%. Click to share on Facebook (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Skype (Opens in new window), Click to share on Telegram (Opens in new window), Click to share on WhatsApp (Opens in new window), Click to email this to a friend (Opens in new window). Kevin Tully joined CAPTEK as Senior Vice President of Sales and Marketing after nearly 25 years of experience in global sales and marketing, building market share for branded and private label manufacturing businesses. This can represent a significant piece of the round you just raised and comes with high expectations for internal hires that have worked tirelessly at much lower compensation levels. If you’re giving a full salary, then less equity is fine. 1% means in a $100 million exit, you make $1 million. And if your startup gets … Or you're gonna fail. A four year vesting schedule is typical. 3) Double Trigger. 3. You can change your cookie choices and withdraw your consent in your settings at any time. Originally published February 12, 2014. 1) Equity. A startup company might be valued at $2 million when an early employee joins the firm, but attain a value of $20 or even $200 million just a year or two later. Hang out in places like that, then less equity is one of those things that it ’ VP! A $ 100 million exit, you 'll be the go-to for all deal-to-deal negotiations for of. How valuable he/she is work in a start-up, the pre-funding stock options should be higher! 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