But again, it’s on a case-by-case basis. In my opinion at … But it depends on what you’re paying this person. And if your startup gets … Are there any benchmarks on what percent equity of the company I should receive. "Primarily because there is no "sales floor" - but also because of the different skill set it requires," he said. 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. In my opinion at least. A four year vesting schedule is typical. "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. Don't be that guy (or girl). Great advice! Because it's your ass.". 3. 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). Learn. This is a real thing. But first time founders will be much more susceptible to it. But your founder just made $100 million. 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. That’s some serious scratch, even if the startup tanks and the equity turns out to be worthless. Please see this FAQ about her services or contact her at (650) 326-3412 or at info@stockoptioncounsel.com.. I was offered an equity position in the company. I was with a startup called LinkedIn, where I was an early employee and tasked to build their corporate sales team. I definitely did not have percentage points in the company. By using this site, you agree to this use. 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. Some of it comes down to the person and how valuable he/she is. 100%. Venture Deals is a great perspective on start-up funding models. Both were VCs. And if you are offered a VP of Sales job, whether it be your first or your last, it's a dealbreaker. The national average salary for a Equity Sales Vice President is $123,054 in United States. I'd say the low end is 300K in OTE and the high end is 400K  in OTE. It’s natural for a VP Sales not to care about costs. Startup equity is one of those things that it’s fair to say every startup founder without an MBA struggles with. Oh I had so much to learn. A double trigger means that upon acquisition followed by termination of the employee (you), the employee will vest all remaining stock. 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%. Yeah. We mentioned that you should consider startup offers holistically, including both equity and salary. 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? Salespeople are stereotypically competitive, hungry and cash-oriented, but like any employee at a startup, equity can play a … 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). Startup salary and equity data for thousands of sales startup jobs. ... 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% Again, tough to diagnose this early. Prior to joining CAPTEK, Kevin spent the last 17 years at leading companies including Pharmavite, Nice-Pak, and Nature’s Bounty. 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. 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. Or you're gonna fail. We’re pre-funding right now. Adapt. Pre-funding it’s usually much higher. You get nothing. 2) Compensation. 1,381 open jobs for Vice president sales in New York. 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. 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 … Most people don’t have to think about this stuff until it’s really important. 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 VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. So if you want to go hang out in places like that, then knock yourself out. They don't know better than the founder the vast majority of the time. Another important factor to consider is the type of team you … But when you make unforced errors the odds really stack against you. Even if you are a first time VP of Sales you can't do it for less than 1%. 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. 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. 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. Equity Compensation Rules of thumb, guidelines, conventional wisdom & other considerations Frank Demmler. With that in mind, you need to know what to ask for, what not to. 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. Founders’Pie Getting started correctly is critical! 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. I’m in a similar situation. Search Vice president sales jobs in New York, NY with company ratings & salaries. If you’re giving a full salary, then less equity is fine. Get the double trigger. 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. 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. I'm a vp of sales for a startup 4 employee company. The older I get the more important this is. Outside influences do not know your business the way you do. 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. As we casually discussed the Valley, LinkedIn, etc, Chris made a comment I will never forget. 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. 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. 5) Are You Fired Up to Sell this Product? Salary estimates are based on 11 salaries submitted anonymously to Glassdoor by Equity Sales Vice President employees. 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. 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. See our, Just Because Your Scale VP Didn't Kill You…. Startup equity incentive plans typically allow for grants of both flavors, with the specific situation determining which one is used. 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. Equity is often the most confusing and intriguing part of a compensation package at a startup. Based on what I’ve seen in the past, 0.5% to 3% is typical for an experienced VP post Series A funding. For more information, see our Cookie Policy. Equity. Just sayin'. What are the dealbreakers? For a head of engineering, top of that range; for corporate functions like HR or finance, near the bottom. Some companies will offer a choice of compensation packages, ranging from high equity and low salary to low equity and high salary. Smarten  up. 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. Equity: Stock and Vesting Schedules. 1% means in a $100 million exit, you make $1 million. 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. But sales is sales. You can't fake this. How much equity should I ask for as a startup’s VP of Sales? … VP Sales & Marketing Joined Thermata in Feb. 2011 with responsibility for market strategy and customer and strategic partner relationships. He said: "Well I hope you got percentage points in the company. I was still relatively young in my career. Most startups pre-funding can’t afford much of a salary, so they usually compensate with higher equity. Filter by location to see Equity Sales Vice President salaries in your area. For founders and CEOs who've never hired a VP of Sales, maybe this helps a bit too. RSS 2.0 feed. 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. If you come from a large software company, don’t implement their methodology. 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. If the person is experienced and can bring a lot to the table, the pre-funding stock options should be significantly higher. Let go of what you know. Seed-funded startups would offer higher equity—sometimes much higher if there is little funding, but base salaries will be lower. 10 Rules to Being a VP of Sales in a Startup. In a billion dollar exit, you make $10 million. Other senior roles may warrant a half a percent. Most startups have a 4 year vesting period with a one year cliff for the equity they offer you. One morning I got up early for breakfast and sat down with two of Jamie's friends, Tim Connors and Chris Noble. 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. 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. Team Building & HR                      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 … 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. Most VP of Sales are looking for ballpark $250-$350K OTE in NYC with 0.5-3.0% equity. Listen. You can change your cookie choices and withdraw your consent in your settings at any time. General range on equity: 1% on the low end. 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. I will say 1% minimum for a member of your executive team. Michael Pici wrote for HubSpot that a typical salesperson wouldn't survive on the startup sales floor. This website uses cookies to improve service and provide tailored ads. by Naomi Kokubo, Cofounder of Founders Space. 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. Starting base salaries for a VP of Sales at these companies begins in the $160K-$175K range plus equity. Prior to joining Thermata, Mr. Musselman founded Mobius Energy LLC, a renewable energy consultancy that developed manufacturing equipment for … But costs are critical when you’re adding sales reps and then a VP Sales ahead of profitability. Post was not sent - check your email addresses! Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. Some companies that are desperate will pay 500K but I think that's too much to pay a VP of Sales in a startup. And get moving. Which means: If you get acquired and the acquiring company cans you, you immediately accelerate vesting on any unvested stock you have left. Both 50/50 base to variable. Originally published February 12, 2014. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. Just to want a budget and a top-line number to meet. It's hard enough to win just based on external forces. Adobe can pay that. Because it is your ass. Sorry, your blog cannot share posts by email. So long as he/she has a strong group of leaders around them. I was not even a VP yet. And it was my ass? Salesforce can pay that. 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. 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. It isn’t going to work in a startup. 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. Literally 100% failure rate. Working with our sales team and CIO, you'll be the go-to for all deal-to-deal negotiations. As VP of Sales, you'll be on the front lines negotiating deals with major law firms across the country. Explore by role, location, skill, or market. “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. What kind of team are you inheriting? Because constantly changing course is very disruptive in a startup. Is this about right? 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 … 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). A equity Sales Vice President employees engineering, top of that range ; for corporate functions like HR or,... Average salary for a member of your executive team was offered an equity position the. You want to go hang out in places like that, then knock yourself out VP of you... 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