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If the founders have $1B between the two, then employee #1 would have (guesstimating) on the order of $10M, assuming the standard employee#1 == 1%. Of course t
by khazhou 8y ago
If the founders have $1B between the two, then employee #1 would have (guesstimating) on the order of $10M, assuming the standard employee#1 == 1%. Of course there's the initial investor share and option pool to account for, but we're still in the right ballpark.
Employee #20, who joined maybe a few months in, and then put in seven years, is gonna be at order of magnitude down, $1M. Employee #50, who put in six years, is the hundred thousands, and we keep going down.
Yeah, fantastic money, but pales compared to founders.
Lesson: don't not be a founder.
- lukejduncan 8y agoThis math feels off. It’s hard to imagine employee #20 making “only $1m” when there are engineers at Lyft getting $1m+ equity packages as offers today. Maybe their initial grant would be worth that much but for sure there would be a large number of subsequent grants since joining at #20.
- hawaiianbrah 8y ago$1m+ equity offers today? Hmm... that sounds pretty high.
- dannyw 8y agoNot unsurprising, 1M equity over 4 years at today’s valuation is fairly common.
- paulddraper 8y agoLesson 2: don't not be successful as a founder.
- vecter 8y agoCompletely wrong assumptions.
- khazhou 8y agoWhich assumption is wrong? Employee #1 @ 1% equity is very common. You very quickly get into .5% and .1% after just a few employees.