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Well, the investors (hopefully smart people) in that particular round hope to get more money for their shares than they paid for them - so one could make the ca
by JoachimSchipper 16y ago
Well, the investors (hopefully smart people) in that particular round hope to get more money for their shares than they paid for them - so one could make the case that one dollar of shares is somewhat more valuable than one actual dollar.
On the other hand, what employee wants to put his wages into a highly-risk investment like a startup? (High-risk investments can pay off, sure, but you don't want to take those risks with money you need for food and housing.)
- yrashk 16y agoThat kind of employee that could work for equity. There's not much of those, but that's how it seems to work ;) It's not even necessarily full time at the very beginning