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Tech startups are giving new hires fewer shares as valuations cool
- helsinkiandrew 3y agohttps://archive.ph/4NxvF https://archive.ph/4NxvF TLDR: > “Companies are being very conservative in how they think about managing both cash and equity in an uncertain market ... employees no longer believe in trading hours or compensation for equity because they do not believe the market is there the way it was before to generate wealth,” he said. “HR departments are looking at what employees really value and they value cash more right now than they do equity.”
- okokwhatever 3y agoJust "cool"? Valuations based on thin air disappeared 2 years ago and we still talk about why did it all failed? Startups in general terms are just a wishful business and this is good because new things sometimes win their position if are better, cheaper,... but just because the clone of a clone rises money (because laundering is not seen as a politically correct term in this forum) it doesn't mean it's a grown ups business with a future of more than 3 years in the horizon. Startups are a nice idea, a fun game and, lets be honest, we've earn a lot of money in the industry with this ideal but it's not gonna happen anymore (or anytime soon). And yes, a share of "nothing" remains "nothing" if the business isn't profitable.