Startup GC or Stay Put Forum

[Anonymous User]

I am currently an AGC at a large private company. My comp is mid-300s with bonus (bonus is pretty much guaranteed), no equity. I like my job and colleagues. The work is interesting and diverse, and I rarely work past 5. Feel like I hit the in-house lottery, except for the fact that there is no equity and no real path to be GC anytime soon (so won't be hitting it rich).

I have the potential to be GC at a start up in SV although I can work anywhere. The comp is only $200k base and 25% bonus based on how the company performs (no idea how likely I am to receive bonus) plus stock that is officially worth several hundred thousand, but obviously could end up worthless or millions depending on how things go the next couple years. There is no real budget for outside counsel, but they do have a firm helping with some of the corporate docs.

9 YOE. S/O makes enough where the pay cut isn't an issue. Would you take the risk on the startup for the upside?

[VentureMBA]

I am currently an AGC at a large private company. My comp is mid-300s with bonus (bonus is pretty much guaranteed), no equity. I like my job and colleagues. The work is interesting and diverse, and I rarely work past 5. Feel like I hit the in-house lottery, except for the fact that there is no equity and no real path to be GC anytime soon (so won't be hitting it rich).

I have the potential to be GC at a start up in SV although I can work anywhere. The comp is only $200k base and 25% bonus based on how the company performs (no idea how likely I am to receive bonus) plus stock that is officially worth several hundred thousand, but obviously could end up worthless or millions depending on how things go the next couple years. There is no real budget for outside counsel, but they do have a firm helping with some of the corporate docs.

9 YOE. S/O makes enough where the pay cut isn't an issue. Would you take the risk on the startup for the upside?

Totally depends on the startup. I would also ask them when they got their current 409A valuation. If it was before the recent downturn, you're likely looking at significantly overpriced options that may depreciate before they appreciate in value.

[Anonymous User]

I am currently an AGC at a large private company. My comp is mid-300s with bonus (bonus is pretty much guaranteed), no equity. I like my job and colleagues. The work is interesting and diverse, and I rarely work past 5. Feel like I hit the in-house lottery, except for the fact that there is no equity and no real path to be GC anytime soon (so won't be hitting it rich).

I have the potential to be GC at a start up in SV although I can work anywhere. The comp is only $200k base and 25% bonus based on how the company performs (no idea how likely I am to receive bonus) plus stock that is officially worth several hundred thousand, but obviously could end up worthless or millions depending on how things go the next couple years. There is no real budget for outside counsel, but they do have a firm helping with some of the corporate docs.

9 YOE. S/O makes enough where the pay cut isn't an issue. Would you take the risk on the startup for the upside?

Seems like you have a sweet deal now. With the economy on shaky ground, seems like a bad time to move to a speculative, unknown startup?

[Anonymous User]

If it's not a complete BS startup/has real backing, go for it. No need to waste your time as an AGC with no future when you can be running the show.

[1styearlateral]

Take the GC startup role if you're most interested in building something from the ground up and are OK having little to no support/structure. I don't mean that facetiously, either; some people enjoy roles where they have to role up their sleeves and be in situations outside their comfort zone.

[Anonymous User]

Given your lack of upward mobility and your lack of equity, unless you prefer the stability and ability to essentially coast, I think a move like this is probably a good move for you at some point. Given that it’s generally fairly hard to get such an offer (without knowing more about your background), I’d say you should take it. It may or may not pan out in this instance, but it should provide you a better basis for the next GC role, whether at a startup or a slightly more established co.

[Anonymous User]

I am a GC at a biotech start-up, hopped over from a large multinational corporation around a year ago. I only lost a little in compensation. Don't regret it at all - the risk is worth it to me. Happy to answer any questions you have - and I can PM you if you want.

[Anonatty]

I am a GC at a biotech start-up, hopped over from a large multinational corporation around a year ago. I only lost a little in compensation. Don't regret it at all - the risk is worth it to me. Happy to answer any questions you have - and I can PM you if you want.

PP GC,

While I'm not the OP of this thread, would you mind PM'ing me? Would love to pick your brain on a few things.

Cheers.

[jagpaw]

I am a GC at a biotech start-up, hopped over from a large multinational corporation around a year ago. I only lost a little in compensation. Don't regret it at all - the risk is worth it to me. Happy to answer any questions you have - and I can PM you if you want.

Would love to connect over PM as well. Nearly identical situation as OP, and also have a long-standing interest in biotech. Thanks in advance.

[Anonymous User]

I am a GC at a biotech start-up, hopped over from a large multinational corporation around a year ago. I only lost a little in compensation. Don't regret it at all - the risk is worth it to me. Happy to answer any questions you have - and I can PM you if you want.

OP here. Would you still recommend this if I have been in my current role for under a year? How have you dealt with complicated issues that are outside of your wheelhouse? Have you been able to go to outside counsel for advice or just been able to manage on your own? Also, are your hours closer to big law or 9-5? Thanks!

[Anonymous User]

I am a GC at a biotech start-up, hopped over from a large multinational corporation around a year ago. I only lost a little in compensation. Don't regret it at all - the risk is worth it to me. Happy to answer any questions you have - and I can PM you if you want.

OP here. Would you still recommend this if I have been in my current role for under a year? How have you dealt with complicated issues that are outside of your wheelhouse? Have you been able to go to outside counsel for advice or just been able to manage on your own? Also, are your hours closer to big law or 9-5? Thanks!

I don't think it really matters that you've been in your current position for less than a year. If you are worried that you don't have enough experience to be GC yet, staying longer as AGC will not give you much more preparation. There's some things that you'll face as GC that you just won't have to face as AGC. For example, you'll be tasked with building legal SOPs and functions from the ground up, which is something you can only learn by doing. And honestly, it's fine to be learning on the job and making mistakes at an early start-up. Nobody knows exactly what they are doing, everyone is growing as the company grows.

My main practice area is IP, so there are many things outside my wheelhouse, such as VC financing, HR, FDA, tax, etc. It's all a matter of triaging. When an issue comes up, I'll see if I can find an answer with some researching. If I can't or I know it's just too big for me to handle, I'll hand it off to outside counsel. Having good outside counsel is key - they will help bail you out, but also you can learn from them so that you know what to do the next time the issue comes up. You can take advantage of CLEs, conferences, and webinars that they offer (I've been offered training directly targeting start-up counsel).

My hours are mostly 9-5, but it depends on what is happening. There are intense periods, such as our last VC financing round. I work mostly remotely, and the hours are flexible - I can take time out of my day for personal matters and finish the work later. But hours vary from place to place - I can't guarantee what your hours will be like.

One additional thing to note is that the role is always changing because start-ups change and grow so fast. For example, HR has been a bigger piece of my pie recently because we ramped up hiring. In another example, I used to handle all procurement and purchase orders (i.e., standard commercial contracts) until we hired a lab manager that took over that responsibility.

[Anonymous User]

A GC role should have significantly more than "several hundred thousand" dollars worth of equity. If it's truly the GC role, I'd start my ask at 1% of FDS and let them negotiate me down to 75 or 50 bps if they try.

What stage is the startup? What was the last funding multiple? Hard tech or soft tech? What's the outlook? Absolutely impossible to answer this question in a meaningful way without more info about the startup.