vp sales equity startup

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

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