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Exactly. Hiring 2 top engineers for 5% each is way less dilutive than taking 300k at the powerpoint stage.
by danielharan 15y ago
Exactly. Hiring 2 top engineers for 5% each is way less dilutive than taking 300k at the powerpoint stage.
- sriram_sun 15y agoIf we are talking powerpoint stage, there is no revenue coming in. Would top engineers settle for 5% with no salary?
- gfodor 15y agoThere are definitely stages in the life of a startup that are pre-salary but less risky than ground zero. For example, some initial market validation, users, or even paying customers could be there. Or, there could have been a significant engineering breakthrough or two. Or, simply the fact that the startup has survived its first pivot is evidence the team has staying power.
- its_so_on 15y agoespecially if you've had an ethical bypass and are willing to go Zynga on them later. Engineers are a lot easier to push around than angels (or VC's) are.
- danielharan 15y agoI'm starting my second startup and in it for the long haul. It would be incredibly short sighted of me to do this to early employees. Of course, you can never be completely sure of the founder's character so trust is always required.