Startups Anonymous Est. 2013 · Read-only archive
Questions

I’m responsible for 30-40% of our traction and we’re worth $10M. How much am I worth?

Just got a nice $10M VC valuation. I’m responsible for more of the traction than anyone else. I help out with some UI/UX but I’m not a tech guy. What equity do you think I’m worth?

14 answers from the community

AAnonymous· Jun 4, 2014

8-10%

AAnonymous· Jun 4, 2014

Your saying a founder is giving up $1,000,000 of his $10,000,000 company to a single person? 2.5 million if the other people "responsible" for traction are also given an equal amount.

We (the founders) have given up 6% total to multiple key high-impact employees. However, these decisions we're made before the key employees we're hired as an enticement to join / stay-on for the long haul.

AAnonymous· Jun 4, 2014

"You're" for the grammar police.

AAnonymous· Jun 4, 2014

Hard to say without more information. Not saying this directly applies, but consider a hypothetical salesperson: She brings in 80% of all sales with a 40% close rate. Is she worth 80% of the company? Depends on how how much of her success is her sales ability and how much is what she's selling.

Ddana· Jun 4, 2014

<p>That's a hard question to answer without knowing your company... Are you a co-founder or employee? Are you replaceable?</p>

AAnonymous· Jun 4, 2014

Define "responsible". Startups are a team effort.

AAnonymous· Jun 4, 2014

A.) Why do I have a feeling you're responsible for a portion of a 30-40% portion?

B.) Unless you're a founder, you're worth less than 1% when all is said and done.

AAnonymous· Jun 4, 2014

B) +1.

If you are not a founder, even if you are great at your job, you should realize you are getting a pay check every month, and you are not undergoing any risk whatsoever, so why would you get any more than 0.1-1%?

AAnonymous· Jun 4, 2014

Yuuup

AAnonymous· Jun 4, 2014

Your worth = What you negotiate when you join the team.

Traction = Result of team work.

So, sit tight and get more traction.

AAnonymous· Jun 4, 2014

Are you getting a commission check? If you are, then that's all you're worth.

AAnonymous· Jun 4, 2014

Early on in my career, I solely developed a product (not the general idea) which ended up getting the company sold for close to 30M. There was even a group of "high value" individuals outside the main ownership group that got paid a 200-300k lump sum, because of what they negotiated before hand. I was left with nothing, not even a thank you for the 80hr work weeks. That was a lesson learned. Looking back, I could have forced their hand into that high-value group before the acquisition, but I didn't know the game. If you didn't negotiate anything before joining and you feel like you're worth it, tell them you are going to walk and see what they can offer on the equity side.

I would agree with the others above, most likely something that rounds up or down to 1% is what you'd be looking at if you are as important as you think you are.

AAnonymous· Jun 5, 2014

You are actually right on this. If you sniff an acquisition it would be wise to negotiate something ASAP. That's only if ur a key cobtributor or someone who is a good bullshitter which unfortunately there are way too many in this space.

AAnonymous· Jun 4, 2014

Until human capital is valued more than financial capital, you're worth your paycheck