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You know all those employees that you gave equity to in order to lure them onboard? Well, you've got a few options at that point. You can go public so they can
by Blackthorn 11y ago
You know all those employees that you gave equity to in order to lure them onboard? Well, you've got a few options at that point. You can go public so they can cash out. Or you can do some kind of revenue-sharing scheme so they can get cash. Or something. Point is, you have to make good on your promise to them (their equity) at some point or they're all going to quit.
- icedchai 11y agoYou don't think most employees are smart enough to realize options in most startups are like lottery tickets? Yeah, you might win, but the probable value is zero or close to it.
- progmal1 11y agoYes, but in this case, they have a winning lotto ticket that is hard to cash.
- esaym 11y agoThere is that issue, but surely not all startups offer that?
- theseatoms 11y agoEquity investors of all kinds will eventually want to liquidate.