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This is one area that YC has a strong incentive to act in, but hasn't. A startup ecosystem with a best practices guide to equity and suboptimal exits would hel

This is one area that YC has a strong incentive to act in, but hasn't. A startup ecosystem with a best practices guide to equity and suboptimal exits would help everyone. Doesn't have to be rules, just a guide and companies who comply and those who don't. For an example how this could work, see the CFA and GIPS. Every big asset manager is in compliance with GIPS. Every reputable startup should choose whether to be compliant with best practices for equity for employees.

gaius 9y ago
A VC is disincentivised to empower ordinary workers regarding equity.
- rwallace 9y ago
  In the short term perhaps, but in the long term? What happens when word gets around that you shouldn't join a startup because even if it succeeds, your equity will just be stolen from you?
  - gaius 9y ago
    What happens when word gets around that you shouldn't join a startup because even if it succeeds, your equity will just be stolen from you? That word has already gotten around and is one of the main reasons for ageism in the industry - the only people who will work for startups are those who haven’t been burnt or wised up yet.
    - evmar 9y ago
      Just to second this point, I am often courted by potential startup employers and I am usually pretty skeptical for exactly this reason.
      - wtvanhest 9y ago
        Yeap, imagine if the company's HR rep was able to say that their equity distribution is compliant with YC employee favorable equity standards (YCEFE) or whatever. I think it would make hiring much easier. Ultimately, the exits which barely pay investors back are not how YC or anyone in VC makes money (power law) so creating an equity standards system seems like an obvious choice.
JonFish85 9y ago
"This is one area that YC has a strong incentive to act in, but hasn't." This is an interesting thing to consider. If you look at the current president of YC (sama), at least from an outsider's perspective, he's the beneficiary of exactly the type of behavior you're trying to get away from. Based on his company's exit, he is now a VC, but his company was acquired for essentially what it raised, meaning the employees' stock was likely worthless. I have absolutely nothing personal against sama, but let's remember that YC doesn't exist as a charity, it's a business.
- conanbatt 9y ago
  Man we are such cattle in this topic. If employees could publicly sell their stock, employees would share information constantly about things like this. I cant imagine one measure increasing salaries and efficiency more than allowing employees to trade stock.
- s73ver_ 9y ago
  "but let's remember that YC doesn't exist as a charity, it's a business." But let's also remember that the people running YC are adults, fully capable of telling right from wrong, and fully capable of being held responsible for their actions. Being "a business" is no more of an excuse for their actions than "following orders" is.
  - dmitrygr 9y ago
    Being able to tell right from wrong, and acting on knowing something you're doing is wrong are different things. It is much easier to do something you know is wrong, when you stand to benefit to the tune of a few dozen million dollars.
    - deleted 9y ago
      [deleted]

gaius 9y ago

A VC is disincentivised to empower ordinary workers regarding equity.

rwallace 9y ago
In the short term perhaps, but in the long term? What happens when word gets around that you shouldn't join a startup because even if it succeeds, your equity will just be stolen from you?
- gaius 9y ago
  What happens when word gets around that you shouldn't join a startup because even if it succeeds, your equity will just be stolen from you? That word has already gotten around and is one of the main reasons for ageism in the industry - the only people who will work for startups are those who haven’t been burnt or wised up yet.
  - evmar 9y ago
    Just to second this point, I am often courted by potential startup employers and I am usually pretty skeptical for exactly this reason.
    - wtvanhest 9y ago
      Yeap, imagine if the company's HR rep was able to say that their equity distribution is compliant with YC employee favorable equity standards (YCEFE) or whatever. I think it would make hiring much easier. Ultimately, the exits which barely pay investors back are not how YC or anyone in VC makes money (power law) so creating an equity standards system seems like an obvious choice.

JonFish85 9y ago

"This is one area that YC has a strong incentive to act in, but hasn't." This is an interesting thing to consider. If you look at the current president of YC (sama), at least from an outsider's perspective, he's the beneficiary of exactly the type of behavior you're trying to get away from. Based on his company's exit, he is now a VC, but his company was acquired for essentially what it raised, meaning the employees' stock was likely worthless. I have absolutely nothing personal against sama, but let's remember that YC doesn't exist as a charity, it's a business.

conanbatt 9y ago
Man we are such cattle in this topic. If employees could publicly sell their stock, employees would share information constantly about things like this. I cant imagine one measure increasing salaries and efficiency more than allowing employees to trade stock.
s73ver_ 9y ago
"but let's remember that YC doesn't exist as a charity, it's a business." But let's also remember that the people running YC are adults, fully capable of telling right from wrong, and fully capable of being held responsible for their actions. Being "a business" is no more of an excuse for their actions than "following orders" is.
- dmitrygr 9y ago
  Being able to tell right from wrong, and acting on knowing something you're doing is wrong are different things. It is much easier to do something you know is wrong, when you stand to benefit to the tune of a few dozen million dollars.
  - deleted 9y ago
    [deleted]