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

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