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But as a early employee, when you join before valuation goes up... You still make only scraps, because you're not getting that many shares to start with and "co
by eloisant 7y ago
But as a early employee, when you join before valuation goes up... You still make only scraps, because you're not getting that many shares to start with and "common stock" aren't worth as much as "preferred stock".
- leet_thow 7y agoCommon and preferred shares start to converge as a company approaches IPO. An employees gains are likely to exceed those of VCs in such an event. When companies are acquired and when liquidation preference comes into play is when employees get screwed.