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Serious question: why would any employee want to work at this company? If the founder has already taken money off the table at $100M valuation, they must have a
by peter422 3y ago
Serious question: why would any employee want to work at this company? If the founder has already taken money off the table at $100M valuation, they must have an overwhelming equity stake. If they aren’t trying to reach any type huge growth exit then it seems there isn’t much upside for employees.
- toomuchtodo 3y agoSome combination of quality of life, enjoyable/meaningful work, competitive total comp without an equity component comes to mind. Equity can be important (in either a VC or employee owned enterprise), but is not necessarily mandatory to meet these requirements.
- wink 3y agoIf they pay an agreeable salary and the work sounds interesting, why wouldn't they? Even if you're wary of startups you have a founder that seems set for a predictable direction instead of hypergrowth and you might have a better chance of it not going bust next year. Then again if you're in it for the shares and the big opportunity, then probably not.
- LeifCarrotson 3y agoBecause the company can offer a weekly paycheck at market rates, of course. Why else would someone work at any company at all? VC funds with dozens or hundreds of investments may like a landscape where one or two make a 10x or 100x valuation and the rest go bust chasing that goal, but I personally can't afford to gamble my family's future with my 2,000 hours per year on a 1% chance that my employer will rocket to the moon. Also, job-hunting is a pain, I'd prefer that my employer not go through massive layoffs or risk bankruptcy unnecessarily. Equity growth or profit-sharing bonuses are just that - bonuses, mostly ignored when comparing total comp unless the 'bonus' is extremely stable and reliable. I need to take home a reasonable salary in exchange for my labor.