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> Startups are way too greedy with equity. And this has gotten worse. During the .com explosion, the war for talent saw younger engineers (<= 5 years of experi
by runako 5y ago
> Startups are way too greedy with equity.
And this has gotten worse. During the .com explosion, the war for talent saw younger engineers (<= 5 years of experience) were getting 1%-3% in companies that had already received VC funding, while also getting raises from other firms. Compared to the grants on offer today, the risk/reward is completely inverted.
- missedthecue 5y agoThe valuations today are just so much higher though. Pets.com, the poster child of dotcom era excess IPO'd at a $250mm valuation. Companies today are raising 2x or 3x that in their series C these days! 1Password picked up $620mm in their series C just the other day.
- runako 5y agoThis means the early employees today are producing more economic value for shareholders and are being paid less for creating more value! (Unless early team sizes have changed substantially, which I don't believe to be the case.)