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This. Equity is a lotto ticket, not an IOU. If you join an established public company that offers RSUs, etc. thats different. Those can be traded for cash mo
by iancmceachern 4y ago
This.
Equity is a lotto ticket, not an IOU.
If you join an established public company that offers RSUs, etc. thats different. Those can be traded for cash money, once vested. Getting your equity out of a startup before the IPO or public stage isn't as straightforward, or real.
Join startups because it's a thing you are so passionate about making, a thing that you think the world needs so badly that you are willing to make personal and professional sacrifices to bring it to reality. Join a startup because you love thr team, really want to work with them and really think that what your building is good for you, your community, the world.
The equity piece is just there so folks like us don't feel "Walter Whited" when our passion project makes a big impact, and the world rewards that impact with financial gains.
- jollybean 4y agoPeople can work for startups for whatever reason they want. Equity will be worth something or not based on a variety of factors, the more in tune you are with those things the better. It's not 'I'm gonna be rich' vs. 'Lottery ticket' - there are ways to understand it. That said, I'd put a high risk premium on equity.
- iancmceachern 4y agoThanks for this. It made me do some more digging. From quick googling the odds of winning powerball is on the order of e-10, while unicorn startups of valuations above 1 billion have a success rate on the order of e-5. Your comment is true, startup equity is more likely than a lotto ticket so it's not the best analogy. https://nanoglobals.com/startup-failure-rate-myths-origin/ https://nanoglobals.com/startup-failure-rate-myths-origin/