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Big tech gives employees RSUs. There's little risk for employees and huge upside. Startups offer options, which employees have to buy with their own cash, and d
by peppertree 4y ago
Big tech gives employees RSUs. There's little risk for employees and huge upside. Startups offer options, which employees have to buy with their own cash, and deal with tax implications. Average engineer can only get burned so many times before realizing startups are crap deals.
- mourinhoalex 4y agoAgreed, startups give you sort of a lottery rush, you imagine how much money you can make and you can accept just out of the thrill of you having so much money. More often the stock options are worthless, and that's how many companies value them when counter offering.
- tayo42 4y agoI thought those options could still be sold on secondary markets? I might be wrong though
- dilyevsky 4y agoTitle should be “greedy investors and management making life tough for themselves”. Where did i put my tiniest violin in the world…
- pacetherace 4y agoStartups are not a crap deal. Startups that start with the dream of raising 100s of millions are crap deals.
- echelon 4y ago> startups are crap deals Not always. Get in at a 200+ engineer startup that is still growing, has a huge TAM, moat, lots of velocity, and a clear path to IPO, and you've got a pretty good shot at making great money. This is a good sweet spot for risk and reward. Try to model the outcomes yourself.
- Afton 4y agoIn general, you won't have enough information to accurately model this yourself, IMO. You might increase your edge, but you're still basically getting lottery tickets.
- peppertree 4y agoPersonal experience working at a startup with massive growth, moat, took Softbank money in 2014 before it was infamous, stuck in series D. You can model all you want but it's still lottery.