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Are there other examples where employee #1000 still made $20M? That requires a $200B exit which... have any other startups gotten to? Most exits would be less
by wholien 7y ago
Are there other examples where employee #1000 still made $20M? That requires a $200B exit which... have any other startups gotten to?
Most exits would be less than Dropbox ($10B). Say it's 10% of it, a $1B exit, which is extremely respectable. But as employee 100, you get $1Million. That probably requires 4 years at the company to fully vest. Assuming you were paid $150k/year, your total compensation is $1.6Million (pre-tax). Assuming you spent the same time at FB, you can probably pull in an average of $300k per year, depending on which level you start at [0]. So your best alternate path has a return of $1.2million.
You beat the FB route if you are the first 100 employees, vest most or all of your shares, and your company exits at $1B and above. I'm not sure what chance of that happening is, but it's probably lower than 75%, so the expected value of the startup route as an employee is lower than $1.2Million. Of course, FB route doesn't have a 100% chance of happening either, but it's a lot closer to 100% than the startup route.
[0]: https://www.levels.fyi/ https://www.levels.fyi/ - I used the average of E4 average and E5 average.