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> The vast majority of startups go bust before IPO or acquisition In recent times, these giant late rounds with the amount of preference given mean that when a
by trimbo 6y ago
> The vast majority of startups go bust before IPO or acquisition
In recent times, these giant late rounds with the amount of preference given mean that when acquisition happens, it often doesn't pay out for regular employees/common stock. The common stock employees get is for the moon or bust, or hope an acquiring company is generous.
- ptmcc 6y agoThe best many non-founders can hope for is a cushy acqui-hire deal. I've had several friends have the startups they worked for acquired, and their equity was worth nothing due to valuation and unfavorable liquidation preferences. They got a nice hiring package from a big company, but not significantly better than one can get from applying on your own. And the opportunity cost of taking a below-market wage for several years probably nets out to a loss in pure dollar terms.