401k matching at startups

lstlz·Feb 18, 2023

I am trying to get a feeling for how common 401k matching is at start ups and after what series most start offering it? If you are at a startup, do you currently have 401k matching and what stage/series are you at?

I am currently at a series B startup with no 401k match and I have not been given a clear answer on when they plan to start offering matching.

RebeccaAp·Feb 18, 2023

Currently at a Series B with no matching, but fielding new offers from seed through IPO. I'm seeing - 4% match for the Series D.- 6% for the IPO- Not offered below Series C.It also helps to look at what is in the fund - if it's all junk or a poorly weighted fund then its not really a great benefit.If there is a self-directed option, I always find that out. Ask what the average return was for the last 2-5 years. Here's a great resource: https://www.investopedia.com/articles/pf/12/self-directed-401ks.asp

smichalczuk·Feb 21, 2023

"I understand you don't have the resources yet to offer 401(k) matching. Until that becomes an option, I'd propose a $[10,000] increase in my salary to offset the reduced benefits I'm receiving."That's a little aggressive and probably not how you'd actually word it, but it gets the point across. You will be more likely to convince them to increase your personal compensation than to convince them to put the policy in place for the entire company. (And you would have had the most leverage to negotiate this at the time when you received the job offer.)The dollar amount of the benefit is usually no more than $10,000 a year (sometimes you'll see more generous amounts outside of the tech industry). Netflix lists theirs publicly, which is 4% of eligible pay (https://candidate.netflix.com/united-states/benefits-category/financial). I've also seen a Series H "startup" (practically public) that advertises having a 100% match, but the total dollar amount is capped at $2,000, so the high match percentage is misleading.