3 ms·
Many of these comments seem to instinctively take the side of the VC. "I had to put in more money to avoid being diluted so why shouldn't everyone with shares h
by philipodonnell 9y ago
Many of these comments seem to instinctively take the side of the VC. "I had to put in more money to avoid being diluted so why shouldn't everyone with shares have to do that in each round?"
I mean, as long as the employees are there, they are getting paid the same amount they started with, which has some non-zero discount due to that initial equity grant, so they are technically 'paying' by continuing at the old salary. Why wouldn't an early employee compensation package include being issued shares in each round to maintain their undiluted amount, in return for continuing to work there at a discounted salary?
Not everyone contributes with cash, and cash is not special these days.