4 ms·
At the end of the day, no matter how much equity gets passed around, it's unlikely to pay out big unless your company goes public. Too many companies attach co
by hkarthik 15y ago
At the end of the day, no matter how much equity gets passed around, it's unlikely to pay out big unless your company goes public.
Too many companies attach conditions to their equity and too many acquiring investors and big companies will readily dilute employee shares to sweeten the equity deals for founders and early investors.
Thats why sweating hard times out for equity is a hard sell to engineers these days. There's too many ways for equity to be worthless paper later on and there's countless examples of it happening recently (e.g. Skype, Zynga, etc).
- donw 15y agoHence the profit-sharing. If the company never gets, or was even aiming for, a big exit, but instead turns into a long-term sustainable business, then as an employee you still get a cut of the success you helped create.