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If you can't pay in cash, you're a charity, not a business. At best.
by downerending 7y ago
If you can't pay in cash, you're a charity, not a business. At best.
- paulddraper 7y agoWow, this is the first time I've ever seen a VC described as "charity."
- hn_throwaway_99 7y agoThat's an absurd interpretation. First, I don't know any startups that aren't paying their employees a cash salary. But the tradeoff always used to be that startups paid somewhat below market (and I'm not talking hugely under-market, usually in the 10-20% range), with a much larger potential upside if the startup was successful. The problem with that tradeoff nowadays is that in many cases you're just barely breaking even or coming out ahead with what a FAANG can pay even if the startup is wildly successful. The only way that tradeoff will start being worth it again is if founders and VCs give more real equity to employees so they can benefit if the start up is wildly successful.