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What startups fail to disclose is that the equity they offer is not the same class as the investors have, even though they are taking a huge risk of the startup
by xiphias2 6y ago
What startups fail to disclose is that the equity they offer is not the same class as the investors have, even though they are taking a huge risk of the startup failing.
- SkyPuncher 6y agoEven if the equity is in the same category, it's unlikely to be extremely valuable. A $2M exit sounds great until you factor in the extra taxes and 5 to 10 years to realize that. Many software developers could make a substantial amount of that, without the risk, simply by aggressively working career changes.