25 ms·
Is it? If founders were getting only 10% of ownership which would be further diluted in following funding rounds, how many of them would take the risk of starti
by mckravchyk 2y ago
Is it? If founders were getting only 10% of ownership which would be further diluted in following funding rounds, how many of them would take the risk of starting a company? On the other hand, if early employees were not getting any equity, how many of them would apply anyway because they need the job / or want to gain experience and build their network with limited risk? (not saying that they should not be getting equity). If 1% seems unfair, they can start their own company, then they would quickly find out that the difficulty / risk / stress / responsibility is an order of magnitude larger and equity reflects that.
- habosa 2y agoMany founding engineers do later start their own company after they see how much of a better deal the founder can get (mentioned in the article). Foinding engineers that need the job and would take it without any equity aren’t the difference-makers I’m talking about.