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How many HN posts did we have for all the startups that went under or sold for pennies on the dollar? My friends who spent 6 years at a startup just found out

How many HN posts did we have for all the startups that went under or sold for pennies on the dollar? My friends who spent 6 years at a startup just found out his equity is literally worth pennies on the dollar. It will be a write off at best. 2020 as well. This mentality of looking at successful exits is the same now as it was a decade ago or more.

z3ncyberpunk 6y ago
equity was always worthless at startups unless you're the ceo. you should never join any company trying to pay you in equity.
tempsy 6y ago
I didn’t say everyone is going get rich joining a startup. But there’s a dozen startups from Airbnb to DoorDash to Roblox to Affirm to Coinbase to Robinhood that IPO’d this year or will next where early employees who had strike prices in the pennies or dollars will become very wealthy.
- rconti 6y ago
  And for every one you've heard of, there are IPOs you've not heard of, acquisitions, etc. You might not get rich, but there are plenty of folks out there who have made a few hundred thousand in a small company IPO, or an extra $50k for 6 months of work, or whatever.
- slumpt_ 6y ago
  And that’s always been the case. The point is that joining any of those companies once they are notable and large means your strike and equity offering will be sufficiently small as to render it a nice consolation prize and probably (hopefully?) make up for the years you weren’t earning equity at a higher-paying public firm. Yes, there are always people winning the startup lottery. That has never changed and nobody has ever claimed winning at it is impossible. No, there are not many of them and now is no better a time than any other. The lottery is the lottery. World keeps spinning.
  - tempsy 6y ago
    Well funded private startups have competed with the FAANG on compensation for years. They in fact overcompensate to make up for lack of liquidity and inherent risk you take. Those employees who took the Airbnb offer are doing way better than if they took an equivalent role at a Google or Facebook. The point is the term “lottery” is like a 1 in a million chance or more. Startup options are not a 1 in a million random scratch off ticket. You make an informed decision about a company when you decide to join just like a VC would. It isn’t like you’re picking a company to work for at random.
    - slumpt_ 6y ago
      I trust you are smart enough to be well aware of the kind of bias you are bringing to the table with this judgement, in addition to some plain inaccuracies (actual startups - not AirBnB years deep into its lifecycle where the equity being doled out is not going to make you rich in an exit) regarding compensation vs giants like any FAANG. I am glad you are excited about working at startups. There are a lot of people on here with a LOT of working experience who have seen this game play out over and over and are not dazzled by a handful of giants making it out anymore. Yes, it’s probably better odds than the literal lottery. That does not say a lot. Anyhow, I’m happy you’re excited and am not going to convince you - clearly. Enjoy your weekend dude.
      - tempsy 6y ago
        I guess I “won” the lottery working for one of the companies going public but all of these names have been highly visibly for nearly the whole past decade and an option anyone could have considered over a big corporate job.
        wolco2 6y ago
        If you have known about this company for 10 years and gotten in late your lottery ticket will look like you matched 4 numbers out of 6 with a few extra thousand. But you also took less money over that time so the amount drops. If you got in before anyone heard of the company it could be a true lottery ticket. What companies do you know that have been around for 10 years that someone should join today to get the next lottery ticket?
- jayd16 6y ago
  Yes, and people do win the lottery. The question is what is the real value of the options, reward and risk.

z3ncyberpunk 6y ago

equity was always worthless at startups unless you're the ceo. you should never join any company trying to pay you in equity.

tempsy 6y ago

I didn’t say everyone is going get rich joining a startup. But there’s a dozen startups from Airbnb to DoorDash to Roblox to Affirm to Coinbase to Robinhood that IPO’d this year or will next where early employees who had strike prices in the pennies or dollars will become very wealthy.

rconti 6y ago
And for every one you've heard of, there are IPOs you've not heard of, acquisitions, etc. You might not get rich, but there are plenty of folks out there who have made a few hundred thousand in a small company IPO, or an extra $50k for 6 months of work, or whatever.
slumpt_ 6y ago
And that’s always been the case. The point is that joining any of those companies once they are notable and large means your strike and equity offering will be sufficiently small as to render it a nice consolation prize and probably (hopefully?) make up for the years you weren’t earning equity at a higher-paying public firm. Yes, there are always people winning the startup lottery. That has never changed and nobody has ever claimed winning at it is impossible. No, there are not many of them and now is no better a time than any other. The lottery is the lottery. World keeps spinning.
- tempsy 6y ago
  Well funded private startups have competed with the FAANG on compensation for years. They in fact overcompensate to make up for lack of liquidity and inherent risk you take. Those employees who took the Airbnb offer are doing way better than if they took an equivalent role at a Google or Facebook. The point is the term “lottery” is like a 1 in a million chance or more. Startup options are not a 1 in a million random scratch off ticket. You make an informed decision about a company when you decide to join just like a VC would. It isn’t like you’re picking a company to work for at random.
  - slumpt_ 6y ago
    I trust you are smart enough to be well aware of the kind of bias you are bringing to the table with this judgement, in addition to some plain inaccuracies (actual startups - not AirBnB years deep into its lifecycle where the equity being doled out is not going to make you rich in an exit) regarding compensation vs giants like any FAANG. I am glad you are excited about working at startups. There are a lot of people on here with a LOT of working experience who have seen this game play out over and over and are not dazzled by a handful of giants making it out anymore. Yes, it’s probably better odds than the literal lottery. That does not say a lot. Anyhow, I’m happy you’re excited and am not going to convince you - clearly. Enjoy your weekend dude.
    - tempsy 6y ago
      I guess I “won” the lottery working for one of the companies going public but all of these names have been highly visibly for nearly the whole past decade and an option anyone could have considered over a big corporate job.
      - wolco2 6y ago
        If you have known about this company for 10 years and gotten in late your lottery ticket will look like you matched 4 numbers out of 6 with a few extra thousand. But you also took less money over that time so the amount drops. If you got in before anyone heard of the company it could be a true lottery ticket. What companies do you know that have been around for 10 years that someone should join today to get the next lottery ticket?
jayd16 6y ago
Yes, and people do win the lottery. The question is what is the real value of the options, reward and risk.