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You don't (or shouldn't) join an early stage startup with the expectation that you'll get rich by any measure from the equity. You join an early stage startup b
by cam0 5y ago
You don't (or shouldn't) join an early stage startup with the expectation that you'll get rich by any measure from the equity. You join an early stage startup because you likely want to eventually found your own startup in which you'll own > 50% of it. That's your shot at getting rich. The experience as an early stage employee just exposes you to the chaos and ups and downs of it all, and if it goes well then yeah maybe you make some money, but even more worthwhile is the connections you make in the process (other employees plus potentially the VCs who invested and may ultimately invest in you down the line).
*edit: realized I didn't actually address the question of topic - I would expect the range to be between 0.25% and 0.75%
- harel 5y agoThis is exactly it. Your chances of getting rich off that 0.n% are about the same as the percentage itself. The odds are stacked against you and there is an element of luck to any startup, regardless of how good the idea and execution is. But being there during that ride is something else. The experience and connections you will make will carry over and accumulate in your next venture and the next, etc.
- mytailorisrich 5y agoJoining an early stage company is also a shot at advancing to senior roles very fast (or at all) compared to joining an established company.
- ironmagma 5y agoSince when do founders make 50% equity? Two co-founders, that's 100% already with no room left over for VC investors.
- emteycz 5y agoThen you start diluting... The GP did not say, but I think they meant pre-funding... Or consider: Founder1 50%, F2 30%, Angel1 15%, A2 5%...
- airza 5y agoMan, i would not want to be paid less than market rate for the privilege of maybe getting an investment from my former boss and the experience of running a business and making someone else wildly rich.