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Is it just the VC thing? There is heaps more money sloshing around in Silicon Valley than anywhere in Europe. Then market dynamics have come in and you fund 1
by onethought 6y ago
Is it just the VC thing? There is heaps more money sloshing around in Silicon Valley than anywhere in Europe.
Then market dynamics have come in and you fund 1 company with a gazillion dollars it pays Market + 30% then another company gets a gazillion and it pays Market + 30% + 30% (of course it isn't all cash it's tied up in options, and bonuses etc).
So when someone at google say earns 350k/annum* it's not as insane as that sounds to a european because they actually mean something like: 180k (money) / 100k (shares) / 70k bonus (I mean it's still insane). So having companies and a healthy stock market, and bonuses are usually tied to performance of individual and/or company so It's possible in a bad year they dont get their bonus and their shares reduce heavily in value.
* No idea if this is even ballpark, but just random names and numbers for example sake