From Entry-Level Consultant to Millionaire: How This Former Anaplan Employee Made Over $2 Million
Bhavik Vashi, 32, is living the dream of many Silicon Valley tech workers. He joined a promising startup, did his time, and eventually the company was acquired, minting him as a millionaire. Shortly after graduating from the University of California, Berkeley in 2013, he joined software startup Anaplan. Over the course of about 10 years at the company, Vashi worked his way up from an entry-level consultant role to vice president. "When I joined, we were less than 100 people… and then I just [saw] it grow and expand to over 2,000 people at one point," Vashi told CNBC Make It. "Basically, every time I was promoted at Anaplan, I had an equity grant of some capacity." It all paid off in June 2022, when Anaplan was acquired by private equity company Thoma Bravo at a roughly $10.4 billion valuation. Under the deal, all Anaplan shareholders received $63.75 per share. Vashi made over $2 million after selling all of his equity in the software startup, according to documents seen by CNBC Make It. Today, he has moved onto a new role as the managing director for Asia Pacific and the Middle East at software company Carta.
Key Takeaways
- Vashi’s journey to becoming a millionaire through Anaplan’s acquisition highlights the potential of equity compensation in tech startups.
- Vashi emphasizes that while luck plays a role, strategic moves and a focus on adding value are essential for success.
- He shares practical tips on how to negotiate for more equity at work, including identifying your goals, demonstrating your value, and networking within your company.
H2: The Importance of Equity
Vashi acknowledges the role of luck, but he also credits his own strategic moves. "It was enough to make me dedicate the next chapter of my life to spreading the good word about equity to more people, and [try] to get companies, even [those] outside of venture capital, like furniture stores and mom and pop shops to think about democratizing ownership as a concept," he said. He believes that *equity is an asset class that most retail investors don’t have access to, and that it should be considered a valuable part of any portfolio.
H2: Vashi’s Five Tips for Negotiating Equity
Vashi outlines a five-step approach for negotiating equity:
H3: 1. Identify What You Want
First, employees should evaluate their current financial situation and assess their budget and lifestyle expenses. "You have to be comfortable with your cash compensation number to cover your operating expenses and living expenses," Vashi said. Once these basics are covered, employees can shift their focus to equity. "Most retail investors don’t have access to… [this] asset class and as part of your portfolio, you should always look to maximize that aspect of it, because you can get cash in other places, but you won’t be able to get this kind of a lottery ticket, for lack of a better term, in most places," said Vashi. He adds that negotiating for equity means putting your faith in the company’s success and tying your financial outcome to its success.
H3: 2. Ensure Alignment With Your Goals
If equity is important to you, Vashi emphasizes the importance of choosing a company that offers equity compensation and that you believe in. He highlights that Anaplan’s continuous growth and success were key factors in his decision to join the company. "There were always new and exciting challenges for me to take on anytime I started to feel even a little bit complacent or comfortable," he says. He advises employees to thoroughly research the company before joining and understand its trajectory to assess the value of its equity.
H3: 3. Be Crucial to Success
Vashi asserts that the key to securing more equity is to demonstrate your importance to the company and its success. He says, "The best way to secure equity compensation is to make yourself extremely important to the company." The more value you bring, the higher your equity stake. "There’s going to be a direct correlation between how important you are to the outcome of the company and how much equity you have."
H3: 4. Network, Network, Network
Vashi emphasizes the importance of actively networking within your company to showcase your value and contributions. He urges employees to advocate for themselves, not just rely on their manager to promote them. "Don’t limit your own growth based on how much advocating your manager may or may not do for you," Vashi says. "Make sure that you are advocating for yourself and making your contributions visible, both to your manager but also to your skip levels."
H3: 5. Be Prepared for the Opportunity
Vashi underscores the importance of preparing for negotiations to effectively articulate your value and contributions. "Make sure that whatever work you do, you’re able to articulate how it directly ties to the success of the business," he says. He suggests documenting your accomplishments to build a portfolio of your work. "Start building yourself a portfolio of your own work. That’s going to be useful for you in every raise conversation," he said. "Then, you could eventually turn that into a PowerPoint presentation… which is more summarized when you’re advocating for your team and your function at large."
H2: A Sample Script for Negotiating Equity
Vashi provides a sample script to structure an argument for increased equity:
"For me, I’m at a stage of my career where I’m less focused on my cash compensation. I’m looking to join a company that I believe is going to be successful, and if I believe it’s going to be successful, then I want my personal financial well-being tied directly to the success of the company. If that’s not a relationship that you would like to strengthen through the form of an increased equity grant, perhaps it’s not a great fit for us, because I want to work really hard, and I want to know that all that hard work is eventually going to be able to manifest itself in value for myself as well as the company."
He emphasizes that asking for equity demonstrates a strong belief in the company’s future and signifies a commitment to a longer time horizon, as equity is typically granted over a four-year vesting period.
Vashi’s story and his advice offer valuable insights for anyone considering a career in tech, highlighting the importance of seeking and negotiating for equity. By understanding his strategies and applying them to your own career, you can increase your chances of achieving financial success in the tech industry.
