4 ms·

And what happens in case it does not work out well ?

• temp90210 2y ago
  Employee gets fired and founder may get something or nothing but get “fired” last and turn off the lights on the way out I would guess.
• khazhoux 2y ago
  If startup goes to zero, then everyone goes home with nothing. The founders typically don't lose any money of their own -- that cost is shouldered by angel and series-A investors. Often though, the startup has a "soft landing" where it's acquihired by a larger company, and then the founders typically get executive or very senior roles (with large bonuses, etc) meanwhile the non-founders get standard employee packages.
  • blobbers 2y ago
    Yes, I'm glad I'm not the only one who thinks the economics of it are a little bit broken. I will never join another start up as employee #1. I'd much rather come into a larger start up with a high cash comp + equity, than very low cash comp, worked to the bone. The other thing no one talks about is founders tend not to dilute themselves, but often early employees are diluted heavily.
    • khazhoux 2y ago
      Someone once told there's only two times to join a startup: as a founder, or the year before they go public.