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Biotech Startup question

Biotech startup question:

Considering a job offer from a biotech start-up and wondering how to factor equity into the considerations. What percentage equity would people expect to be offered to a senior leader, one of 5 or 6 people reporting to a CSO, coming on at the same time as the series A funding round closes?

While the offered salary is higher than my current position, with restricted stock vesting in the coming years at my current job, the new offer falls about 50 K short in total compensation. Trying to understand how equity in the start-up should be factored in.

Thank you

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2 replies on “Biotech Startup question”

Equity is tough, factors to consider:

Were you going to remain at your old job the entire vesting period anyway? Or was there always some chance that you leave?

Will you remain at the startup long enough for the entire vesting period? Are they options? Are they RSU? Restricted Stock Units are generally better than options because they are yours after the period and you don’t need to buy them from the company at a fixed price. Options have the danger of being out of the money and you find yourself at a loss if you want to exercise your options.

Will this startup’s equity be worth anything? You need to factor in the value of the probability of the startup failing as well as its success.

Is the work life balance better? Is it a project you are more inspired by? This is important because at the end of the day it may be worth forgoing the previous job’s RSUs if those benefits are better and you can improve your physical and mental health.

Good luck with your decision!

Thank you Number Space! I am quite happy in my current position, and could see myself staying there for years. The work will likely be similar. The key difference is the opportunity for leadership, which would be higher in new role. Thank you for your note about vesting of the options/equity.

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