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As a recruiter, there's an interesting relationship, whereby people use funding raised as a positive metric (oh yes, they raised $200m, this must be a good comp
by seem_2211 7y ago
As a recruiter, there's an interesting relationship, whereby people use funding raised as a positive metric (oh yes, they raised $200m, this must be a good company!)
Even though the less they have raised, the more valuable your equity is likely to be. It's fascinating to watch.
- cbanek 7y agoI always read the "We raised $x million dollars" as "we're not going bankrupt this year, so we can pay your salary." You're right about raising less means you get in earlier, which means you should have more return.
- scott_s 7y agoFor a startup, raising less money, and a new employee getting more equity, also generally means the position has more risk. So the reaction you see is not necessarily irrational.