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Based on the numbers employees got 7.5% of the payout. There seems to be 5 current employees on LinkedIn and possibly some earlier employees who bought out thei
by marcinzm 6y ago
Based on the numbers employees got 7.5% of the payout. There seems to be 5 current employees on LinkedIn and possibly some earlier employees who bought out their equity. That seems roughly a standard equity split for employees which just goes to show you how depressingly low the standard equity grants are for employees. As people say, don't join a startup to get rich unless you're the founder.
- czbond 6y agoWhich is true, but so is my phrase of "If you want to go broke, found a startup". It cuts very deep on the south side often for founders - whereas employees do get a paycheck. Founders will go YEARS often with little to no income.
- marcinzm 6y agoI don't disagree however the paycheck for engineering employees is often a lot less than one could get from established companies. Every startup I've talked to sold equity as a large part of the total compensation and argued it makes up for the cash difference. So you're being asked to give up $100-200k/year worth of salary by joining a startup which isn't trivial. For a tiny fraction of equity with multiple restrictions (10 year expiration, 90 day window to exercise on leaving, can't sell it, etc.).
- czbond 6y agoWholly agree in most cases the trade is not worth the equity