4 ms·
yeah, cash money. if a startup has VC's and lawyers sitting around dreaming up and codifying a complicated and rather arbitrary set of rules to protect their i
by beachstartup 10y ago
yeah, cash money.
if a startup has VC's and lawyers sitting around dreaming up and codifying a complicated and rather arbitrary set of rules to protect their investment from the little people, there's enough cash floating around to pay the employees a fair salary, they just don't want to.
options are fool's gold, plain and simple. you are either a founder, or a venture capitalist, or lawyer, or you should expect a zero or negative value from this silly charade.
if you can't tell which person sitting at the poker table is the sucker...
- zaroth 10y ago>>> There are plenty of financial products possible that will tread the line of compensating employees for their risk and the lack of money and liquidity startups have >> Do you have any examples of these products? > yeah, cash money. Sorry, I don't follow. The standard term sheets available today can reduce the cost of issuing options or RSUs to a few thousand dollars. It's actually a very straightforward and simple process to get stared, and has to be done anyway to at least get shares into the Founder's hands on Day 1. So, yes, there are startup legal expenses, but you are paying it no matter what, adding an option pool up front does not really cost any extra.