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As a YC founder, YC doesn't teach founders anything when it comes to how to split equity. The economics you're describing is a function of (overly) high valuati
by timfsu 3y ago
As a YC founder, YC doesn't teach founders anything when it comes to how to split equity. The economics you're describing is a function of (overly) high valuations in private markets, which leads to equity grants that don't appreciate very much when liquidity happens. This is great for folks that got in early (founders and early investors) and bad for everyone else.
- choppaface 3y agoFalse. YC will connect you with investors and advisors who will do things like perpetuate a 10% employee pool and a 100x to 1000x multiple between CEO and IC compensation. While YC might not give classes about the provenance of these choices, YC founders will inevitably adopt them as they focus towards growth and sales. All YC has to do is be marginally more competitive with other VCs, who will do dumb shit like clawbacks, dilution, Private Equity sales etc.