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Startups are a financial vehicle created to transfer the value created by the employee to the founders and capitalists. Often the founders have done very littl
by logicslave 6y ago
Startups are a financial vehicle created to transfer the value created by the employee to the founders and capitalists.
Often the founders have done very little of value before hiring a team to actually build the company. These people toil away, a decade later, the founder makes 20-100 million, the first employee, a few hundred thousand.
There are exceptions, but this is largely what it is.
- pjbk 6y agoUnfortunately that is mainly the case these days. In theory it would make more financial sense that most companies at the startup stage would be fully employee-owned, considering the equity and tax scenarios. But what founders are open to that? It amazes me that still there are/were people, myself included, willing to partake in a rigged endeavor plagued with pitfalls and restrictions, compared to other business models out there.