3 ms·

There is a name for this. It is called a cofounder ( Who is comparatively more junior than the rest of the team ).

• brianwawok 8y ago
  A cofounder takes risk, an employee does not. Both are valid, but different, paths.
  • sidlls 8y ago
    Employees take risks. The earlier the startup, the bigger the risk. The risk may be different but it's still a risk.
    • fma 8y ago
      Yep...if I'm going to be offered $x as employee #3 with little to no equity, and the same $x at a stable company...I don't see why I should risk joining when there's little reward. Risks can be: Stress due to working more (wearing more hats, not enough employees) Not having a stable paycheck because company needs to pay venders otherwise they go bankrupt. Recession or downturn, loss of job immediately while big company can weather. Etc...all the things not at a big company.
  • throwaway5752 8y ago
    I think the earlier stage you are (seed, angel) then yes, there is definitely risk for a large class of employees. You're taking a risk on the founder's ability to execute, joining a company that is not cash flow positive and tying your mortgage payment/insurance to their ability to raise money in the future... it's derisked in each successive round and startups/founders are not all equal, but I think if we're talking 1rst employee it's fair to say there's some risk.