Not negotiating is part of it, but also its not knowing what to ask for. Though equity is the payoff, most founders at the beginning are pretty loose with their

Not negotiating is part of it, but also its not knowing what to ask for. Though equity is the payoff, most founders at the beginning are pretty loose with their equity because it really has no value, so throwing someone a percent or two when its worth $0 to get someone happens quite often, especially when you as a founder have the lions share. However, the biggest muff that people in this position do, is that they don't understand options and how they work, a little what this guy was saying. Take the options, why not, but treated as money and not sweat equity. You might not be able to get preferred shares and deep informations about the company, and you probably shouldn't, but you can ensure that whatever happens the money you put in vests without strings attached every 6 months until they pay you what you are worth.