I was asked to join a startup as a co-founder that just finished raising a seed/A round of $1,000,000 with a valuation of $2,500,000.
They already have a product that generates revenue for the company.
What is a reasonable mix of salary vs equity that I could ask for?
If that’s the post-money valuation, that would mean that they gave up 66% of the company for $1M? Even if that $2.5M was pre-money, that’s a really significant chunk of the company given up for funding.
In terms of the equity/salary distribution, there are a few calculators that exist out there to help determine it.
Make sure you get enough money to fund all your personal needs. You need to have your head clear for the challenge ahead of you on the job side and will not be able to deal with private cash shortages. Your firm income should cover that part. Then i‘d try to neg a flexible component, depending on your responsibility in the company.
Been through starting up a company twice.
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