3 ms·

> You have to look at the 0.2% in relation to the salary that they offer I disagree. Salary is a real thing that you can use today. Options at a start-up? Some

> You have to look at the 0.2% in relation to the salary that they offer I disagree. Salary is a real thing that you can use today. Options at a start-up? Some studies indicate that start-up failure is at 90% within the first 3 years. This means those options, 90% of the time, don't mean anything. They're literally useless. The other 10% of the time? Depending on percentage, dilution and exit (IPO? Sale? Neither?) it's still difficult to get a return on those options in any reasonable timeframe. In my opinion you should NEVER sacrifice salary for options UNLESS it's an established company where you can see how to get your money out of those options. There is a TON of competition out there for talent, if a company wants a quality candidate they will pay for one.

karterk 11y ago
I agree, but unfortunately that's not how it works. All founders believe that they can succeed. Every VC believes that their investment is going to become the next billion dollar company, etc. Ideally, options are the icing on cake, but the reality is that most companies use options as a way to reduce their immediate expenses - for start-ups, cash is like oxygen. Most start-ups die not because of their competition, but they run out of money.
paulddraper 11y ago
What study is that? In any case, success is (mostly) not rolling a dice. Good planning, strategy, skill, and past experience make a huge difference. I doubt 10% chance of success is the best you can do.