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That is not my experience, nor the experience of most startups in sfbay. For instance: only a fool would think that a $500k equity package, based on eg a 409a
by x0x0 7y ago
That is not my experience, nor the experience of most startups in sfbay.
For instance: only a fool would think that a $500k equity package, based on eg a 409a evaluation, is anything like a $500k equity grant at a FAANG. Because the latter is cash and the former is lottery tickets.
- DaiPlusPlus 7y agoA dollar valuation is bollocks, yes - but a percentage stake of a company valued at 5-10m of (I.e. small-fry) when it gets sold-out to Cisco / Apple / Facebook is not.
- justapassenger 7y agoPercentage stake is also a bollock. Liquidation preference makes selling out good business for VCs. Sometimes founders if they're smart. And engineers are lucky to get anything at all. I highly recommend anyone working in startup world to learn more about how it works in details, and understand how their companies deal with it. You can own 1% of company that's sold for $100M and get $0. And it's all perfectly legal.