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Ask HN: How much did you, as an employee, make when your startup exited?

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Re: Ask HN: How much did you, as an employee, make when your startup exited?

#51

Post by dev_dull »

jrozner wrote: post #49

The current company I’m at just sold about a month ago for $140mil. I was one of the first engineers (the three of us originals all started at the same time) and started a few months after initial funding was raised. Between my purchased options and non-purchased vested options I made about $130k and have another about $40k in remaining options that are converting over. I was kept on by the acquiring company and give…

That seems like a pretty small retainer to me. Did you negotiate that package?

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#52

Post by jrozner »

dev_dull wrote: post #51
jrozner wrote: post #49

The current company I’m at just sold about a month ago for $140mil. I was one of the first engineers (the three of us originals all started at the same time) and started a few months after initial funding was raised. Between my purchased options and non-purchased vested options I made about $130k and have another about $40k in remaining options that are converting over. I was kept on by the acquiring company and give…

That seems like a pretty small retainer to me. Did you negotiate that package?

No. New company’s comp package was underwhelming but they didn’t want to negotiate. I consider it a blessing in disguise to not have handcuffs.

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#54

Post by i_made_a_booboo »

linkmotif wrote: post #47
shawn wrote: post #9

All: Watch out for survivor bias. https://www.youtube.com/watch?v=_Qd3erAPI9w

Don’t worry it’s pretty clear from this thread there are practically no survivors anyway...

This genuinely made me chuckle. So damn accurate.

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#55

Post by nodesocket »

gnicholas wrote: post #50
nodesocket wrote: post #4

Earlier quoted context omitted.

Curious why you have 1,000 shared remaining? Are you still employed there? Also, what was the tax bill on the $14k and $1.1M in terms of percentage? Was it long term capital gains 15% fixed?

FYI, in the US there is the Qualified Small Business Stock exemption, which can significantly reduce the tax owed on the sale of stock of a company that was once small. It can be publicly-traded at the time of sale. Back when I was a tax lawyer, you could exclude 50% of your gain, though the rules may have changed. Also, if you rolled over your gains into other “qualified small businesses”, you could defer taxation a…

Does this exemption qualify if selling a business that has no stock, just a standard asset sale?

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#56

Post by civility »

First startup, I traded nearly all of my salary over four years for stock options: $0

Second startup, I was told I'd get 5% of the company (no contract though). I quit after a year without pushing the topic: $0

Third job was not a startup, but it was a fairly small company, and I've made nearly two million in tax deferred accounts having made a healthy salary the entire time. I'm retiring this year.

I learned a lot of great things at those first two companies, but I would never recommend a startup from a financial point of view. I almost joined a third startup, but I didn't, and they folded as well. I suspect you've got better odds going to Vegas and putting your salary on a number from the roulette table.

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#58

Post by deanmoriarty »

Joined among the first 10 employees. The company grew to 200 employees and 400M valuation in 4 years. Sold last year a portion of my vested shares for 1M to investors as part of a secondary transaction, and I still have a decent amount (70%) of vested shares and unvested options, since the company hasn’t exited yet and management has no plan of doing so in the short/medium term.

I’m not counting on the rest of the equity to be worth as much because I don’t believe in the company ability to execute well at this point, too many changes diluting the quality and the mission. Unfortunately I wasn’t able to sell more as part of the secondary transaction (company rule), otherwise I would have dumped it all (the vested part that is).

Yet I consider myself lucky after having read all these comments, but had I gone to FAANG 4 years ago my financial outcome would have been very similar, if not bigger.

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#59

Post by rubicon33 »

deanmoriarty wrote: post #58

Joined among the first 10 employees. The company grew to 200 employees and 400M valuation in 4 years. Sold last year a portion of my vested shares for 1M to investors as part of a secondary transaction, and I still have a decent amount (70%) of vested shares and unvested options, since the company hasn’t exited yet and management has no plan of doing so in the short/medium term. I’m not counting on the rest of the eq…

Seriously? 4 years at FAANG would net you $1,000,000 savings?

That seems... crazy. Can someone explain how that works? Your salary alone living in the bay area, definitely isn't goin to net you $1,000,000 in savings.

Re: Ask HN: How much did you, as an employee, make when your startup exited?

#60

Post by [deleted] »

rubicon33 wrote: post #59
deanmoriarty wrote: post #58

Joined among the first 10 employees. The company grew to 200 employees and 400M valuation in 4 years. Sold last year a portion of my vested shares for 1M to investors as part of a secondary transaction, and I still have a decent amount (70%) of vested shares and unvested options, since the company hasn’t exited yet and management has no plan of doing so in the short/medium term. I’m not counting on the rest of the eq…

Seriously? 4 years at FAANG would net you $1,000,000 savings? That seems... crazy. Can someone explain how that works? Your salary alone living in the bay area, definitely isn't goin to net you $1,000,000 in savings.

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