So while I was in California taking some summer classes I networked a ton and, I have a CFO job position available at a start-up that is currently at about $700,000 valuation trying to hit 20 million in 5 years. Is going to try to raise a series A within a year. I personally think it will be a great experience, but this will most likely ruin my chances at IB.
If you had this opportunity would you pass on in assuming you are getting 10% equity 7% non dilutable?
I know the roles are very different and I would love some input. I know that start ups are highly speculative and very risky.
Coming from a non target school.
What is your salary going to be?
I am not in a position where I am worried about money.
I am just looking for something to spend my time on. I assume unpaid until series A. Somewhere between (90,000-150,000) after series A.
Would I want to be a CFO someday? Sure. Would I ever want to work for a company that's willing to hire me as a CFO straight out of college with presumably no work experience? No way. This situation sounds fishy and, no offense, you are probably not at all qualified to run all financial operations of a growing company at this point of your life. {{still sounds like a sweet gig though-- maybe I'm just jealous}}... and according to post history you're only a sophomore? How do you expect to manage CFO+college?
No, I completely understand I do not think that I am qualified to be a CFO but (not calling myself) Zuckerberg, Gates, Jobs, or Dell. But they probably had no clue what they were doing. When they first started out. I know they are one in 27 million, but I still think it would be a great experience. And being removed from the company would not be the worst thing as I would still have equity (pull and Eduardo Saverin). In the case it gets a billion dollar valuation in the future.
The way I got the Job was though an Altruistic act and we talked a lot. I have been consulting the company for the past 3 weeks and they seems to like what I have been doing for them. And they hinted at an offer.
I would love to hear your opinion on some of the statements above.
I wouldn't go for it, if you are still in college then you should not take the risk
Another thing you should consider is that if the company really does reach a $20M valuation, you will likely be replaced with an outside CFO with more experience. You'll likely still have a role in the company (as a nonfounder that's not guaranteed), but investors will prefer to have an experienced CFO in place.
I honestly just want to help the company out. I'm not worried about my role especially after I get equity. As it would probably be a win/win for the company to get an experienced MBA type.
Difference between CFO and IB MD.
CFO Screams, Fk You then hangs up the phone. IB MD Hangs up the phone, and then screams Fk You.
I just declined the offer and I will continue to consult the company in the future.
If they don’t fill it and you continue to consult, you may become the de facto CFO, which could be ideal. Can you ask to be compensating for the consulting gig with equity? Might be a nice way to hedge your decision.
I am sure I will be compensated in the future. I will ask some time when the company starts to produce revenue as its (MVP) is nearly complete. I will probably be actively involved in the hiring process of the C suite when the time comes.
You made the right choice. For one thing, it's really unusual for a company that early to need a CFO. If it's some kind of complicated fintech co, maybe, but otherwise, startup financials are typically really simple, handled by an accountant once a quarter for a few hundred bucks.
If the founders think they need a CFO, they have delusions of grandeur and/or alarmingly bad capital allocation skills, which are not good signs.
As for that non-dilutable equity? I don't care if it's signed in blood. There is no VC on earth that will fund a company with that in the cap table. Which means that you'll be forced to re-cut your deal or be responsible for the company going bankrupt. (You also didn't mention a vesting period and a cliff, but those too are standard. You'd have to agree to both retroactively if there's a financing).
Thanks! Good to hear from a person in the VC industry that I made the correct decision; I was a little scared hence why I went to the forums with my problems.
Kinda curious on how the group arrived at the $700k valuation
The founder got a similar quote from 2 different individuals and then I conducted a Berkus method model and gave a valuation around that number.
Is this legit haha ??
I ended up declining the offer. I still talk to the founder every once in a while.
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