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You're expecting it to be higher? This is an average. If a startup hires 10 engineers you're expecting them on average to dole out 20% of their equity just to t
by nck4222 9y ago
You're expecting it to be higher? This is an average. If a startup hires 10 engineers you're expecting them on average to dole out 20% of their equity just to them?
- sillysaurus3 9y agoYes. Those first 10 engineers make or break the billion dollar business.
- albertgoeswoof 9y agoMaybe, but giving them extra equity won't get you any closer to making it, and will make it harder to raise funds (which is what you really need)
- nck4222 9y agoThis is a really one size fits all statement to make. I don't have data to support this but I would bet that the vast majority of startups don't have billion dollar potential. Also, it's probably more accurate to replace "engineers" with "employees". Again no data and depends on the business, but of the first 10 employees, on average maybe 5 of them are engineers? Lastly, I doubt that 10 is the right threshold. 20 at a minimum sounds more reasonable to me. This changes your statement to "Those first 20 employees sometimes potentially make or break a billion dollar business". I agree with the point that employees could receive more equity, but if the average right now is .15%, that's over a 13x increase to 2%. Which seems completely unrealistic and not warranted given the above.