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Why would you want stock in a company that has no intention of being sold? Especially when they're making up the difference in cold hard cash that you can use
by busterarm 6y ago
Why would you want stock in a company that has no intention of being sold? Especially when they're making up the difference in cold hard cash that you can use to buy whatever other rocketship you think is out there.
If you're looking to cash in on a unicorn, you are almost always better off working somewhere else that will pay you the most in cash and using that cash to make your unicorn bets.
- angry_octet 6y agoWell exactly. No IPO, no buyout on the horizon. Stocks would be a less valuable compensation than cash. But the allure of partaking in massive success in a revolutionary startup is pretty significant. Less so if you have a steady salary perhaps, but I wouldn't be surprised to see a few of these people use the safety net of savings and a solid technical rep to try some riskier innovation. I really can't believe I'm explaining startup allure on HN.
- busterarm 6y agoI think I made it clear that's a trap that mostly suckers fall into. You can still partake in the massive success of revolutionary startups with your cash. In fact, you're in a much better position to, because if you're making a lot of cash, odds are you are senior and connected in your field. You have better odds of picking winners and investing in them. There's also opportunity to buy pre-IPO shares.
- angry_octet 6y agoHow would you buy pre-IPO without options?
- busterarm 6y agoEquity exists pre-IPO and people/companies sell it. There's even gray markets for trading it. Being a qualified investor (which you can get to from zero in as little as 4-5 years if you're making FAANG cash) helps a lot.