I was offered a job in a very early stage startup , I will be the first tech guy in this company , all though I have worked on projects from scratch , I wanted to know what is the state in terms of what to ask. They are offering a salary of ~400000 yen per month with an option of equity , I have no idea how much equity should I be asking for.
Secondly about hiring developers , this would be a behemoth on my plate , as the project proceeds , I will have to hire additional developers , this was a request made to by the person discussing the interview.
I have one more round of interview where I will have to confirm and update.
There isn’t any general formula for arriving at a fair ammount of equity, as it depends on many factors. One thing you could do is ask to see the company’s cap table, as that will help you evaluate what they’re offering to you compared to what the founders have. Also, I’d be clear if they’re offering you equity, or stock options, and what the tax implications of that are.
Generally speaking, the easiest thing to do is assume any stock options you’re offered are worthless, as they usually only turn into something of value in the most exceptional of circumstances, and even then, they often don’t amount to much.
AFAIK, it is very unlikely for a company to offer you equity right from the start, it will most probably be “Stock Options”. Which is a certain amount of stock you can buy for a pre determined price (usually much cheaper than actual stock value, so that it is an incentive to keep you in company) And AFAIK having stock doesn’t really mean anything unless the company is listed in the stock market, which means have gone through IPO, which is a long and challenging road.
It all boils down to your view on the position on the company. Do you want to do this job ? Do you believe you will be happy working with these people ? Do you think they have a business plan which can succeed in the long term ? These should be your main concerns while taking the offer, rather than the options/equity they provide with the offer.