4 ms·
If startup equity is worthless then that will usually mean the VCs make no return on their investment. If VCs make no return on their investment then they have
by molsongolden 4y ago
If startup equity is worthless then that will usually mean the VCs make no return on their investment.
If VCs make no return on their investment then they have just dumped millions of dollars into the pockets of startup employees and vendors.
- scarface74 4y agoAnd those employees would be statistically better off working for one of the public BigTech companies that give salaries + RSUs. I can trade my RSUs for real cash every six months after they are deposited in my account. I know the potential value of my next RSU grant every 15 minutes as it is updated on my Google Sheets. The VCs make a return by diversifying their bets. But as an employee for a startup, you are not well diversified. On a related note, Warren Buffett made a bet with hedge funds that he could have better returns just by investing money in an index fund over 10 years - he won
- molsongolden 4y agoNo disagreement here. Ignoring the other pros/cons of BigTech vs. startup work culture that some might mention, many startup employees would take BigTech jobs if they could. Not everybody can land a BigTech job though.