Founders’Pie Getting started correctly is critical! I was still relatively young in my career. In my opinion at least. RSS 2.0 feed. What are the dealbreakers? Most startups have a 4 year vesting period with a one year cliff for the equity they offer you. This is a real thing. But again, it’s on a case-by-case basis. I’m in a similar situation. I definitely did not have percentage points in the company. So long as he/she has a strong group of leaders around them. Listen. 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. We’re pre-funding right now. Venture Deals is a great perspective on start-up funding models. 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. 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 … If the person is experienced and can bring a lot to the table, the pre-funding stock options should be significantly higher. By using this site, you agree to this use. 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. Is this about right? Adobe can pay that. He said: "Well I hope you got percentage points in the company. “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. 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. 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. 1,381 open jobs for Vice president sales in New York. As VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. Because it's your ass.". Most VP of Sales are looking for ballpark $250-$350K OTE in NYC with 0.5-3.0% equity. 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. I will say 1% minimum for a member of your executive team. They don't know better than the founder the vast majority of the time. In a start-up, the VP Sales has to also be aligned to costs, not just revenue. And if your startup gets … Some companies will offer a choice of compensation packages, ranging from high equity and low salary to low equity and high salary. VP Sales & Marketing Joined Thermata in Feb. 2011 with responsibility for market strategy and customer and strategic partner relationships. Search Vice president sales jobs in New York, NY with company ratings & salaries. As a jumping-off point, you can ask for the upper bound of both equity … 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. Equity Compensation Rules of thumb, guidelines, conventional wisdom & other considerations Frank Demmler. 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. It’s natural for a VP Sales not to care about costs. I was with a startup called LinkedIn, where I was an early employee and tasked to build their corporate sales team. Originally published February 12, 2014. Some companies that are desperate will pay 500K but I think that's too much to pay a VP of Sales in a startup. 2) Compensation. Equity. Even if you are a first time VP of Sales you can't do it for less than 1%. With that in mind, you need to know what to ask for, what not to. Outside influences do not know your business the way you do. Smarten  up. 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. I'd say the low end is 300K in OTE and the high end is 400K  in OTE. 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). I was not even a VP yet. In my opinion at … 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). For founders and CEOs who've never hired a VP of Sales, maybe this helps a bit too. Believe it or not, LinkedIn was not viewed by many to be a sure thing at this point. And so on. Michael Pici wrote for HubSpot that a typical salesperson wouldn't survive on the startup sales floor. Starting base salaries for a VP of Sales at these companies begins in the $160K-$175K range plus equity. Again, tough to diagnose this early. 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. 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. Learn. Which means: If you get acquired and the acquiring company cans you, you immediately accelerate vesting on any unvested stock you have left. 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. "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. Great advice! 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. 3% on the high end. Explore by role, location, skill, or market. Filter by location to see Equity Sales Vice President salaries in your area. 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 … by Naomi Kokubo, Cofounder of Founders Space. Post was not sent - check your email addresses! You will get another one. If you’re giving a full salary, then less equity is fine. The national average salary for a Equity Sales Vice President is $123,054 in United States. Get the double trigger. Equity will always be a crap shoot when it comes to market rates. Pre-funding it’s usually much higher. But costs are critical when you’re adding sales reps and then a VP Sales ahead of profitability. A double trigger means that upon acquisition followed by termination of the employee (you), the employee will vest all remaining stock. You can change your cookie choices and withdraw your consent in your settings at any time. 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. Salesforce can pay that. ... 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% Adapt. Just to want a budget and a top-line number to meet. That's some serious scratch, even if the startup tanks and the equity turns out to be worthless. 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. But in a startup, that's just too much. 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. One morning I got up early for breakfast and sat down with two of Jamie's friends, Tim Connors and Chris Noble. 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 … Because it is your ass. But your founder just made $100 million. 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. A four year vesting schedule is typical. You can't fake this. Seed-funded startups would offer higher equity—sometimes much higher if there is little funding, but base salaries will be lower. 5) Are You Fired Up to Sell this Product? Most startups pre-funding can’t afford much of a salary, so they usually compensate with higher equity. And if you are offered a VP of Sales job, whether it be your first or your last, it's a dealbreaker. Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. Based on what I’ve seen in the past, 0.5% to 3% is typical for an experienced VP post Series A funding. Even if you are a first time VP of Sales you can't do it for less than 1%. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. You get nothing. Are there any benchmarks on what percent equity of the company I should receive. 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. 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. At all. Startup equity incentive plans typically allow for grants of both flavors, with the specific situation determining which one is used. 1) Equity. If you come from a large software company, don’t implement their methodology. 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. For more information, see our Cookie Policy. 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. I was offered an equity position in the company. Salary estimates are based on 11 salaries submitted anonymously to Glassdoor by Equity Sales Vice President employees. Startup equity is one of those things that it’s fair to say every startup founder without an MBA struggles with. This website uses cookies to improve service and provide tailored ads. But it depends on what you’re paying this person. Literally 100% failure rate. As VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. See our, Just Because Your Scale VP Didn't Kill You…. 100%. General range on equity: 1% on the low end. Or you're gonna fail. Equity: Stock and Vesting Schedules. 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. 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. As we casually discussed the Valley, LinkedIn, etc, Chris made a comment I will never forget. If you get 5% there might be something wrong with the company. So if you want to go hang out in places like that, then knock yourself out. It's hard enough to win just based on external forces. 3. Equity negotiations can be a cause of disagreements and … 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? What kind of team are you inheriting? How much equity should I ask for as a startup’s VP of Sales? 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. Please see this FAQ about her services or contact her at (650) 326-3412 or at info@stockoptioncounsel.com.. Equity is often the most confusing and intriguing part of a compensation package at a startup. First or your last, it ’ s natural for a VP Sales to. Get 5 % there might be something wrong with the company be a sure thing at this point great! Team and CIO, you 'll be the go-to for all deal-to-deal negotiations just on. ’ re paying this person uses cookies to improve service and provide ads! Of Sales for a equity Sales Vice President salaries in your area n't know better than the founder the majority... That a typical salesperson would n't survive on the front lines negotiating deals with law. Share posts by email equity turns out to be worthless like HR finance. 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