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I imagine YC companies (and similar startups) are salivating right now at the thought of RSU packages dropping like rocks. It is very hard for small startups t
by VirusNewbie 4y ago
I imagine YC companies (and similar startups) are salivating right now at the thought of RSU packages dropping like rocks.
It is very hard for small startups to offer something comparable to 200k salary and 200k a year in RSUs.
But if those packages are now worth 200/70, maybe a salary of 200k and stock options that might be worth a couple million look more more appealing, especially if someone is tired of a big company.
I have a few friends who have expressed this. They wanted to leave the bigcos, but felt like they couldn't because of the money they'd be walking away from. Now they said they're looking at fun startups since their Bigco stock grant is worth so much less.
- reureu 4y agoBut that potential upside of a couple million is now facing a downside of the company not being able to raise their next round and facing layoffs on a 6-18 month runway. I always thought that economic downturns meant people race to the big companies for more security? Of course, if you were already pulling 200/200 from a big company, you might have already banked enough of a nest egg to feel comfortable with the risk of startups.
- VirusNewbie 4y agoGood points, but I think it entirely depends on the company’s runway and revenue. Companies that are making money hand over fist don’t have much to worry about, and startups that just raised and don’t have to raise again for two or three years are probably fine as well (as in, no more risky than any other time to join that early stage company)