Here's how you can ace salary negotiations in venture capital.

Your worth should be assessed in a manner similar to how enterprise values are determined for companies. The points below are crucial for identifying the right time to approach your boss about salary inquiries or negotiating a higher salary. 1. Have you established the value you bring to the company and clearly demonstrated it? 2. Does the company have the ability to support your desired salary? 3. Considering the competitive landscape, how many people with the same skill set and qualifications are applying for the same job? 4. Is this the right moment to approach your boss or interviewer? Consider if they are in a position to make the decision and if the timing is appropriate.

I find it’s always helpful, prior to any negotiation, for you to understand the industry standards for the role and be prepared to summarize your associated accomplishments and, if applicable, their contribution to a former company’s success. Then- Research the company's financial health, funding rounds, and valuation. This gives you a sense of what they can afford. Next- Assess your skills, experience, and achievements. Know what you bring to the table and how it aligns with the company's goals. And remember- Equity can be a significant part of compensation in VC-backed companies. Make sure you understand the terms and potential value of stock options or shares offered.

Negotiate confidently and flexibly, focusing on the total package, and use competing offers wisely. Communicate clearly and professionally, listen actively, and ask about compensation structure and growth opportunities. Consider long-term career growth and firm stability, and seek legal advice to review the contract. Prepare well and aim for a mutually beneficial outcome to secure a package reflecting your worth and career goals.

Show don’t tell and align your incentive package to the same as the VC. Ultimately the VC money will want to exit, so align your remuneration to their exit, a % of their upside is a great starting point.

If you are doing your job and following orders let your work speak for you. There is no negotiation. If you do your work, you will be compensated accordingly. If not, you do not deserve a raise. You deserve to be fired.

It isn't clear which role is being spoken about, and articulating your value should be in line. Fundamentally in any business and so in VC business value is largely put in 2 brackets: 1. Can you make money for the business? 2. Can you save money for the business? If you are able to connect your value prop, experience, background, domain expertise, knowledge, network, education, etc. to any one of the two points above and can articulate how you do that, you should not have a problem negotiating the right compensation.

Salary negotiations need to come from a place of value add. If you believe and can show growth in the value you are bringing to the company, then asking for a higher salary is more legitimate.

Emphasise the concept of "anchoring" your value proposition. Research typical compensation packages for VCs with your experience and skillset. When initiating salary discussions, present a figure at the higher end of that range to establish a strong anchor point. This initial figure sets the benchmark for negotiation and positions you as a high-value candidate. Following this with a willingness to discuss benefits and long-term incentives demonstrates your flexibility, but within the context of your established worth. This anchoring approach ensures you're fairly compensated within the VC landscape.

If it’s the right fit, be flexible but set a clear timeline for salary growth, career milestones, reviews, and success metrics.

📈 What's more understand is to understand the VC pay structure to be prepared for the negotiation. 1⃣️ VC compensation often includes a base salary, and carried interest (% of profits) - & potentially a bonus. 2⃣️ Decide if you want to prioritize higher base pay, more carry, or other benefits (it depends). 3⃣️ Clarify vesting schedules for carry and any clawback provisions if you leave early. Negotiate for terms aligned with your long-term career plans.