I agree in principle that start up employees can be incentivized better than the usual wage or salary slave.
There is always a big butt, though.
Non-capital investors almost always get shares of a lower class that can be denied a share of any future revenue from a sale of the company or god forbid they get real revenue.
These term “Hollywood accounting” exists for a reason and skepticism about the real value of lower class shares is very valid.
Maybe for employees like 1-5. Beyond that is rapidly diminishing amounts of equity. I was employee #49 and got like 40,000 shares options (that I had to buy)
And even if you are like employee #3, the actual owner and investors get more than you
Exactly, there is a place in the world for startups burning 80 hr/wk. Just compensate the people who are doing that adequately with equity, and hire risk takers who want that kind of risk.
The vast majority of people who start at the beginning of a startup will receive equity, so they are also co-owners.
I agree in principle that start up employees can be incentivized better than the usual wage or salary slave.
There is always a big butt, though.
Non-capital investors almost always get shares of a lower class that can be denied a share of any future revenue from a sale of the company or god forbid they get real revenue.
These term “Hollywood accounting” exists for a reason and skepticism about the real value of lower class shares is very valid.
Maybe for employees like 1-5. Beyond that is rapidly diminishing amounts of equity. I was employee #49 and got like 40,000
sharesoptions (that I had to buy)And even if you are like employee #3, the actual owner and investors get more than you
Exactly, there is a place in the world for startups burning 80 hr/wk. Just compensate the people who are doing that adequately with equity, and hire risk takers who want that kind of risk.