Should I take equity in a startup job offer seriously?
TL;DR: Treat startup equity as a lottery ticket with a real but small expected value, not a guaranteed part of your compensation. Ask about the strike price, current valuation, total shares outstanding, and vesting schedule before assigning it any serious weight in comparing offers.
Questions worth asking before valuing the equity at all
- What's the current 409A valuation (or equivalent), and how many shares are outstanding? This lets you estimate your actual ownership percentage.
- What's the strike price, and does it make sense relative to the current valuation?
- What's the vesting schedule, and what happens to unvested shares if you leave or are let go?
How to weigh it against a cash-heavier offer
Most advisors suggest discounting private equity heavily (sometimes 50%+ off its stated paper value) to account for illiquidity and the real chance of the company never reaching a liquidity event — compare offers with that discount applied, not the equity's face value.
Compare offers with equity properly weighted
The Job Offer Decision Report factors in annualized equity alongside base, bonus, and benefits — a real side-by-side, not a guess.
Compare my offers — $4.99 →Frequently asked questions
What's a reasonable equity grant to expect at a startup?
This varies enormously by role, seniority, and how early-stage the company is — there's no universal benchmark, which is exactly why asking for the underlying numbers (valuation, shares outstanding) matters more than comparing headline percentages across offers.
Should equity ever be the deciding factor in taking a lower salary?
Only if you have strong conviction in the company's prospects and can genuinely afford the lower cash compensation without financial strain — treating uncertain equity as guaranteed income is a common and costly mistake.