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I understand what Jason is saying here...but to be honest, it's hard to tell someone that is used to living on $40k/year, that they shouldn't take an offer of $
by marcamillion 16y ago
I understand what Jason is saying here...but to be honest, it's hard to tell someone that is used to living on $40k/year, that they shouldn't take an offer of $20M - that instantly makes them a millionaire.
Ofcourse, once you make that first sale and have the FU money to fall back on, it makes gambling (i.e. growing to IPO) much easier.
I am a little skeptical of Zuck too though.
- bconway 16y agoSure, but a sub-$2M sale for a company still in embryo stage is a very different proposition.
- MichaelApproved 16y ago$20mil from a company that isn't public yet isn't as good as it sounds. Who knows what the vesting terms are as well. Yes, it's still a lot and there are ways to sell the stock but that's assuming they even get $20 million.
- marcamillion 16y agoYou say it's not 'as good as it sounds', it all depends on your perspective. If you are earning $40k - $60k/year - which many young founders were likely earning before joining YC - even if after multiple dilutive rounds of financing you end up with 10% of the company, in a $20M exit....that's still $2M. Sure, you can't buy Fiji....but you are literally going from a bank account with a few hundred/thousand/tens of thousands, to literally hundreds of thousands/millions. That is VERY major the first time it happens. I guess the point I am making is, the jump from having $10K in the bank to $1M in the bank, is SOOOO much bigger than from $1M to $100M - because it impacts your life much more.