[LRUG] [JOBS] Ruby developer for new startup

[Alan Buxton]

As ever sidu is the voice of reason.

a bit more stuff to mull over.

Pick an exit value. Have a look on vc blogs to see what is happening in
Europe.from memory about £40 million would be as good a point as any.

Now think of your chance to successfully get to that exit. You may as well
pick a number out of the air but let's say 10 per cent for the sake of
argument.

How long till the exit? Let's say 5 to 10 years.

I'm sure you can do the sums yourself but the upshot is that: if your
equity stake percentage starts with a decimal point then it ain't going to
be life changing, given the amount of time you well have to work for it.

Sure there are instagrams now and again but frankly you may as well do the
national lottery.

But back to the question about how to put a cash value on equity you are
offered. if the company has had angel or vc funding then they will have an
idea on current valuation so you could ask for this. Then the value its
pretty easy to work out.if they're bootstrapped and not revenue generating
or profitable then your guess is as good as anyone else.

Though if its advice your interested in my view is this. If you really love
what the company is doing and want to be a part of it and want to
eventually share in the upside if there is any then just work out how much
you need to live on comfortably and make sure your salary covers this, and
them take the rest as equity, just as long add the equity feels right.

A
On Jul 11, 2012 7:31 AM, "Sidu Ponnappa" <ckponnappa at gmail.com> wrote:

> I'm curious - have there been no significant startup exits in the UK?
> We have a problem with equity in India for this reason - unlike the
> valley, you don't routinely run into someone driving an expensive car
> that they bought after cashing out their last set of options, so
> making money from equity isn't something people take seriously.
>
> Best,
> Sidu.
> http://c42.in
> http://sidu.in
>
>
> On 10 July 2012 22:27, John Arundel <john at bitfieldconsulting.com> wrote:
> > On 10 Jul 2012, at 17:33, Tom Blomfield wrote:
> >>
> >> Why is the mention of "equity" an issue for you? Or is that
> tongue-in-cheek?
> >
> > It was tongue-in-cheek, but there was an excellent discussion on the
> list last September about equity and whether or not it's a substitute for
> money, and if so, how much.
> >
> > http://lists.lrug.org/pipermail/chat-lrug.org/2011-September/006368.html
> >
> > I don't know the details of the OP's job offer. If it's market rate or
> more *and* equity, then great. If the equity is to compensate for a low
> salary, then alarm bells should be ringing. Even a large share of
> potentially nothing is potentially nothing.
> >
> > Regards,
> > John
> > --
> > Bitfield Consulting: we make software that makes things work
> > http://bitfieldconsulting.com/
> >
> >
> > _______________________________________________
> > Chat mailing list
> > Chat at lists.lrug.org
> > http://lists.lrug.org/listinfo.cgi/chat-lrug.org
> _______________________________________________
> Chat mailing list
> Chat at lists.lrug.org
> http://lists.lrug.org/listinfo.cgi/chat-lrug.org
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.lrug.org/pipermail/chat-lrug.org/attachments/20120711/f3ade963/attachment-0003.html>