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Should I negotiate if they plan to raise my salary within next round of funding?
Old 07-17-2019, 04:53 PM   #1
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Should I negotiate if they plan to raise my salary within next round of funding?

I just received an offer for 85K salary, 0.50% equity. They're a seed-funded startup and are closing out their next round. My base will increase to 110k and they anticipate it'll be within 45 days. This was all in the written offer.

My expectations was 90-100k, but if it'll increase to 110k - I'm more than happy. However, what if they don't close out or one of their deals go bust? Then I'm stuck at 85k.

How should I proceed with this?
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Old 07-17-2019, 05:14 PM   #2
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You're in a startup. It's not just the salary. If they don't raise funding or a deal goes bust the whole tent can fold.
45 days isn't that far out... they should have a reasonably clear picture on how well this round of funding will go.
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Old 07-18-2019, 07:50 AM   #3
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Originally Posted by Spock View Post
You're in a startup. It's not just the salary. If they don't raise funding or a deal goes bust the whole tent can fold.
45 days isn't that far out... they should have a reasonably clear picture on how well this round of funding will go.
That's true, but from what I was told...this funding wouldn't be life-or-death for the company. They'll still have significant if it goes bust since the purpose of the funding is to accelerate their growth.
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Old 07-18-2019, 08:22 AM   #4
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Get it in writing. I've been screwed out of promised raises because they didn't "remember" the promises made. I don't believe it hurts to negotiate, nobody else is fighting for you but you. Perhaps if for some reason the promised raise doesn't happen, leave room for the negotiation at that point. Don't leave it that if "x" doesn't happen nothing happens for you.
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Old 07-18-2019, 08:44 AM   #5
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Originally Posted by justlikebike View Post
Get it in writing. I've been screwed out of promised raises because they didn't "remember" the promises made. I don't believe it hurts to negotiate, nobody else is fighting for you but you. Perhaps if for some reason the promised raise doesn't happen, leave room for the negotiation at that point. Don't leave it that if "x" doesn't happen nothing happens for you.
In my OP, I said it's in the written offer so not sure what level of "writing" you're proposing.

So you're saying to negotiate for higher salary if funding doesn't go through?
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Old 07-18-2019, 08:53 AM   #6
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Originally Posted by sizzlinkola View Post
In my OP, I said it's in the written offer so not sure what level of "writing" you're proposing.

So you're saying to negotiate for higher salary if funding doesn't go through?

The contingency wasn't clear, you said you're "stuck", but if that's in the written offer, then maybe ask for a bit more equity if they can't offer you a raise? Or would you be OK at $85K for a while? I think if you think the company is well managed and you trust the leadership, you might gamble on getting a raise based on your performance and the company's performance (if it continues to grow or at least maintain its current business). Any well-run company will want to keep its high performers and pay them a fair market rate. (The problem is when the estimate of fair market rate or value differ.)
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