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What happened was that VCs started sucking up all the equity and it became not worth it from a risk-reward perspective for most people to work at a startup. Thi
by umeshunni 8y ago
What happened was that VCs started sucking up all the equity and it became not worth it from a risk-reward perspective for most people to work at a startup. This, coupled with companies staying private longer meant that in the lat 5 years, you were better off working at G/FB than a small or mid-sized startup.
e.g https://www.slideshare.net/a16z/state-of-49390473/29-29Because_the_returns_have_movedTech https://www.slideshare.net/a16z/state-of-49390473/29-29Becau...
- ummonk 8y agoWhile VCs certainly played into this, I'd say founders merit the bulk of the blame. VCs are generally more amenable than founders to larger equity pools for employees. They're also much more enthusiastic about IPOs than founders, since they want liquidity events for their investments.
- ryandrake 8y agoThank you both. VCs and founders together have sucked up all the potential value of working for a startup, leaving only risk and below-market pay to employees. Until this changes, big name companies are not just safer but higher expected value.