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The founders get diluted more than anyone else. They also start with overwhelmingly more than anyone else. Pity the poor founder with their meager twenty percen
by eropple 9y ago
The founders get diluted more than anyone else. They also start with overwhelmingly more than anyone else. Pity the poor founder with their meager twenty percent--an employee at their pennies of equity is vanishingly unlikely, even at a successful company, to make back the opportunity cost of having their salaries gashed by going to a startup.
- Yizahi 9y agoAlso founders have shares. Employees get options with some crazy three letter types. They HAVE to pay in advance to get even those 0.0001% of shares after dilution. Not only that but they have to conjure that money in what, 3 month term, 1 month? I don't remember exactly.