3 ms·

Yep, I think people are starting to realize that unless you are (a) a founder with 20-30% equity or (b) an early employee at one of the few startups that succes

by jartelt 10y ago

Yep, I think people are starting to realize that unless you are (a) a founder with 20-30% equity or (b) an early employee at one of the few startups that successfully exits for >$1B without any down rounds, your equity most likely will not be worth more than $100k. If your equity is only a $100k bonus after 7 years, it doesn't make as much sense monetarily to take a pay cut to work at the startup.

nicholasjarnold 10y ago
My friends and I discuss this all the time. There are always people trying to get us (software engineers) to join various startups around town/country, but the comparatively low salaries coupled with the exceptionally low possibility that any offered/granted equity will be "worth it" some day leads almost all of us to follow more traditional routes with companies that can pay us today, not MAYBE tomorrow.
- eldavido 10y ago
  Devs seem to be realizing this, at least the ones I know (new thing). Seems the endgame's going to be higher equity grants. If VCs won't fund something unproven at 350/head and devs won't work for peanuts, higher equity grants seem the only option. I think it'll be just like Hollywood, in that projects are evaluated as much for who they've managed to recruit (e.g. a movie with Brad Pitt is fundable) as on other business fundamentals. It's striking how much of business views "labor" as ancillary to success. That might be true if you're running a pizza joint but it couldn't be farther from the truth building a software company, or making a movie.
  - arcanus 10y ago
    > That might be true if you're running a pizza joint but it couldn't be farther from the truth building a software company, or making a movie. Or starting a medical practice Or starting a hedge fund Or starting a law firm It might be the most important thing for any new venture, across history. There is a good reason that the start of the story about Jason and the Golden Fleece describes assembling his crew of Argonauts.
asabjorn 10y ago
This is very much aligned with what I have learned, and its only made worse by successful startups often taking 8+ years to exit with many more rounds than before. The stock incentives are aligned with the startup exiting in four years or dying.

by jartelt 10y ago

nicholasjarnold 10y ago

My friends and I discuss this all the time. There are always people trying to get us (software engineers) to join various startups around town/country, but the comparatively low salaries coupled with the exceptionally low possibility that any offered/granted equity will be "worth it" some day leads almost all of us to follow more traditional routes with companies that can pay us today, not MAYBE tomorrow.

eldavido 10y ago
Devs seem to be realizing this, at least the ones I know (new thing). Seems the endgame's going to be higher equity grants. If VCs won't fund something unproven at 350/head and devs won't work for peanuts, higher equity grants seem the only option. I think it'll be just like Hollywood, in that projects are evaluated as much for who they've managed to recruit (e.g. a movie with Brad Pitt is fundable) as on other business fundamentals. It's striking how much of business views "labor" as ancillary to success. That might be true if you're running a pizza joint but it couldn't be farther from the truth building a software company, or making a movie.
- arcanus 10y ago
  > That might be true if you're running a pizza joint but it couldn't be farther from the truth building a software company, or making a movie. Or starting a medical practice Or starting a hedge fund Or starting a law firm It might be the most important thing for any new venture, across history. There is a good reason that the start of the story about Jason and the Golden Fleece describes assembling his crew of Argonauts.

asabjorn 10y ago

This is very much aligned with what I have learned, and its only made worse by successful startups often taking 8+ years to exit with many more rounds than before. The stock incentives are aligned with the startup exiting in four years or dying.