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Most startups make very little or no profit while they grow. They're often sold long before they turn a profit. In those cases a % of profit would be worth 0 wh
by rfrey 10y ago
Most startups make very little or no profit while they grow. They're often sold long before they turn a profit. In those cases a % of profit would be worth 0 while equity could be worth quite a lot.
Profit sharing does have a long history in more traditional industries though.
- rdtsc 10y ago> Most startups make very little or no profit while they grow. Ok agree, that was the obvious bit I missed. I never really worked for startup, so wasn't familiar. So idea was silly, makes sense now.