4 ms·
For those reading this article who might be tempted to a company like this: stay away! You’ll not get any meaningful equity, what you have will be quickly dilu
by ed25519FUUU 6y ago
For those reading this article who might be tempted to a company like this: stay away! You’ll not get any meaningful equity, what you have will be quickly diluted, and as the company either starts its death spiral or “March towards profitability” you’ll be asked to work inappropriate hours and your commitment to the company will be questioned.
Go for an early stage startup with meaningful equity or just go for a more stable, profitable company.
- silentsea90 6y agoI would strongly recommend the latter. The former is playing the lottery. Even if you win, stock appreciation in big tech over 10 years beats the startup stock. Not to mention, you won't be at a no name startup for years to find out whether you won the lottery.
- ska 6y agoThis makes sense from a financial point of view, but that's not the only factor people care about. I'd state it more like: Go to an early stage startup only if you'll still be happy with the experience if the equity evaporates.
- silentsea90 6y agoIf one doesn't care about the financial PoV, there are good enough reasons to go to a mid stage startup as well (clearer purpose, structure, product market fit etc.) over an early stage one.
- NateEag 6y ago_When_ the equity evaporates. Statistically, that's the smarter way to think about it.