1

Compare offers from startup and FAANG

Profile picture
Mid-Level Software Engineer [SDE 2] at Amazona month ago
  1. Received verbal offers from Snorkel AI (non-public startup) and Meta, but not sure how do I perform apple to apple comparison once I receive the offers.

  2. Recruiter from Snorkel mentioned a per share preferred price of ($15) for offer evaluation. How do I identify if this number is inflated or not ?

54
3

Discussion

(3 comments)
  • 1
    Profile picture
    AI/ML Eng @ Series C startup
    a month ago

    There is no apples to apples comparison, FAANG just gives a ridiculous guaranteed amount of money... no matter how many different ways you fudge the numbers.

    TC doesn't mean jack in startup world. You're always taking an outsized risk by joining a startup that may/may not IPO. By default, all non-public company shares are inflated, since there's no liquidity in them. Cash salary is the only part of TC you can depend on there.

    Think of it this way: joining FAANG is like investing in the S&P 500, you'll get a decent return for the effort/time you put in.

    Joining a startup is like investing in Gamestop. It could go to the moon or go boom.

  • 1
    Profile picture
    Tech Lead @ Robinhood, Meta, Course Hero
    a month ago

    It's impossible to do an apple-to-apples comparison between a startup and a Big Tech company 99.9% of the time. The rare exception is when a startup is so mature and so guaranteed to go IPO that it's already giving RSUs (this is what Robinhood did when I joined pre-IPO).

    For startups, you need to do the math to figure out what the value of the option is on paper. Ideally your recruiter/hiring manager are nice and just tell it to you (but this is rare). I recommend this playlist (we really need to refactor this into a course) to learn more about the math (find the lessons about equity): [Masterclass] Understanding And Optimizing Your Pay In Tech

    I looked up Snorkel AI, and it seems like a hot AI unicorn. I generally prefer unicorns to Big Tech (especially if you have worked in Big Tech already like yourself) as you still have good financial upside (with some risk of course), but you don't need to deal with all the crappiness of FAANG (politics, lack of scope, red tape).

    At the end of the day, it really comes down to your priorities. If you need consistently high TC, it's hard to turn down Meta which pays well even among FAANG. But if you want to learn more and have more excitement in your life, unicorn is obviously the way to go.

    Last and certainly not least, team quality matters a ton as well. If one manager came across as far better and more supportive than the other, just join them. It's hard to go wrong following a truly stellar manager.

  • 0
    Profile picture
    Mid-Level Software Engineer at Walmart
    a month ago

    Two approaches -

    1. Go with the offer you like the best purely in terms of work. If Meta's team is what you want and you think you can achieve a better learning delta at, go for that. If you see too many red flags say on your 1<>1 with your EM, probably go the other way.
    2. The calculated approach. Check this out - https://pitchbook.com/profiles/company/300289-33 and see what your projections on Snorkel's future earnings are and make sure the $15 is in the range of acceptable share price. As Scott Galloway says, you might as well be in the last row of a spaceship taking off than to miss it and regret it.

    Also, you might want to wait till they formalize offer terms