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Startups are largely a financial vehicle to shift value created by employees to founders and investors
by greatpostman 4y ago
Startups are largely a financial vehicle to shift value created by employees to founders and investors
- bdw5204 4y agoCorporations as a whole are a financial vehicle to shift value created by employees to executives and investors. Being an early stage employee in a startup with significant equity means betting that your employer will eventually grow and you'll be somebody receiving the value rather than somebody creating it. That's how you reach the upper class in a capitalist economy and startups have successfully accomplished that for many founders and early stage employees.
- danielmarkbruce 4y agoMost startups create zero value and go out of business. So: startups are largely a vehicle to take money from hard working people's pensions (the LPs are often large pension funds) and put it in the pockets of employees who have created zero value. Now that's a cynical take. But no more than the alternative view. A positive take might be: startups are a financial vehicle to take a risk on a new business. The parties enter voluntarily, and different parties take different risks and have the opportunity for different rewards.
- tlb 4y agoIf you believe that and you're still an employee, what's holding you back from founding a company? Moving from low-paying job A to high-paying job B not only benefits you, but causes average pay for A to increase and B to decrease, following a supply & demand curve. As more people switch from employee to founder, the value transfer and inequality you observe will decrease.
- greatpostman 4y agoI’m working on my own startup