2-Min Quiz

Is My Equity Offer Good?

Answer 5 quick questions to see how your startup equity compensation compares to market benchmarks.

Get instant feedback and personalized recommendations.

Question 1 of 5

Your Role

What's your role at the company?

Founder / Co-founder
Executive (C-level, VP)
Engineer / Technical
Sales / Marketing / Growth
Operations / Support / Other

Question 2 of 5

Company Stage

What stage is the company at?

Pre-Seed 0-10 employees, < $2M raised
Seed 10-50 employees, $2-15M raised
Series A 50-150 employees, $15-50M raised
Series B+ 150+ employees, $50M+ raised

Question 3 of 5

Your Equity

What percentage of the company are you being offered?

Enter as a percentage (e.g., 0.5 for half a percent)

Example: 0.5 = 0.5%, 1 = 1%, 5 = 5%

Please enter a valid percentage

Question 4 of 5

Vesting Schedule

What's your vesting schedule?

4 years with 1-year cliff Standard, most common
3 years Faster vesting, less common
5 years Slower vesting
Not sure / Not specified Check your offer letter

Question 5 of 5

Base Salary

What's your annual base salary?

This helps us evaluate your total compensation package

Enter your total annual base salary before taxes

Please enter a valid salary

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How do you evaluate if an equity offer is good?

Evaluating an equity offer means calculating the potential dollar value of your equity grant and comparing it to the salary you're sacrificing. The formula is:

Equity Value = (Equity Percentage × Exit Valuation)

A good offer has equity worth 2-5x your annual salary discount. For example, if you're giving up $50K in salary to join a startup, your equity should be worth $100K-$250K at exit.

Worked Example: $0.5% Offer at Seed-Stage Startup

You're offered 0.5% equity at a seed-stage startup. If the company exits at $100M, your equity is worth: 0.5% × $100M = $500,000.

If you're giving up $50K/year in salary, your equity multiple is: $500K / $50K = 10x. This is an excellent offer.

However, seed-stage startups have ~70% failure risk. Adjusted for risk: $500K × 30% = $150K expected value. Still 3x your salary discount — a good offer.

Key factors: role, company stage, vesting terms (4-year standard with 1-year cliff), and growth potential. Use our offer comparison tool for detailed analysis.

Frequently Asked Questions

How do you evaluate if an equity offer is good?

Evaluate an equity offer using the equity multiple formula: Equity Value = (Equity % × Exit Valuation). For example, 0.5% equity at a $100M exit = $500K. Compare this to your salary foregone. Good offers typically have equity worth 2-5x your annual salary discount. Key factors: role (engineer vs founder), company stage (pre-seed vs Series B), vesting terms (4-year standard), and growth potential. Use benchmarks: engineers at seed-stage typically get 0.1-0.5%, executives 1-5%, founders 10-50%.

What is a good equity percentage for my role?

Typical equity ranges by role and stage: Pre-seed engineers 0.2-1%, seed engineers 0.1-0.5%, Series A+ engineers 0.05-0.2%. Executives: pre-seed 2-10%, seed 1-5%, Series A+ 0.5-3%. Founders typically own 10-50% each depending on team size. Earlier stage = higher equity due to higher risk. Always consider equity value relative to your total compensation package and the company's exit potential.

How does company stage affect equity value?

Company stage dramatically affects equity risk and potential value. Pre-seed companies have 90%+ failure risk but 100x+ potential upside. Seed-stage have 70% failure risk with 20-50x potential. Series A+ have lower failure risk (40-60%) but more modest upside (5-20x). Later-stage offers typically come with lower equity percentages but higher probability of payout. Your equity percentage should compensate for the stage risk — earlier stage = more equity required.

What vesting terms should I look for in an equity offer?

Standard vesting is 4 years with a 1-year cliff (you get 0% if you leave before 1 year, then 25% vests at cliff, then monthly vesting). Good terms: 4-year vesting, 1-year cliff, single-trigger acceleration (if company is acquired, your vesting accelerates). Red flags: longer than 4 years, longer than 1-year cliff, double-trigger acceleration (requires both acquisition AND termination), or no vesting at all. Always negotiate vesting before signing — your equity is worthless if vesting terms are unfair.