3 ms·
Well, I'm not very smart, and even I understand that the true value of 0.5% over four years is odds-on very likely to be zero...
by aaronem 11y ago
Well, I'm not very smart, and even I understand that the true value of 0.5% over four years is odds-on very likely to be zero...
- potatolicious 11y ago> "0.5% over four years is odds-on very likely to be zero..." More importantly, that even if you beat the odds and the company is a smashing success, 0.5% over four years is likely worth less money than the cash/stock bonuses major tech companies are handing out anyways, especially accounting for liquidation preferences and ratchets. The big lie in startup equity isn't how unlikely they are to succeed, it's how little you would walk away with even if they do.
- paulddraper 11y agoExactly. An 80% chance of zero and 20% chance of millions is different than an 80% chance of zero and 20% chance of 70k. And a lot of people fail to identify the difference.