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One thing I've learned working for startups is if you're working for a founder who's already had a previous successful startup exit(s), two things are true: 1.
by vrosas 1y ago
One thing I've learned working for startups is if you're working for a founder who's already had a previous successful startup exit(s), two things are true:
1. the founder already has generational wealth and this current company means practically nothing to them.
2. they've already learned every trick in the book to keep the company's value in their own pocket and out of the hands of their employees.
- bravesoul2 1y agoA special case of early stage share options aren't worth shit.
- throwawaythekey 1y agoThe first time founders I had couldn't keep 100% of the equity out of the VCs pockets, so YMMV.
- semitones 1y agoThis seems highly cynical. If the current company means practically nothing to them, why would they be bothering with it at all, especially given that they could be doing almost anything else they wanted, given their generational wealth?
- dymk 1y agoThey’re doing it for fun / dick waving contest / it’s all they know / “sigma grindset” mentality Why do dogs chase frisbees?
- tptacek 1y agoI'm working for a founder with a previous successful exit and neither of those statements are true of him.
- spyspy 1y agoOP is making broad statements, and you might even be right about your guy. But even if your founder is not super wealthy from the first exit, your current startup could go under and if that happens employees will be left with absolutely nothing. Him, on the other hand, will probably have a golden parachute to land with. Either way he will be now be a "serial entrepreneur" and will be able to utilize his VC friends to start the next thing in no time. He's going to be fine. And there's no telling what he will do if your startup does actually end up being worth something. Transfer the IP to a new company and fire everyone? Introduce new share classes for investors and dilute everyone else to zero? Sell the employees (acquihire) to some horrible BigCorp™ and then retire to Hawaii? No shortage of stunts they could pull once real money is on the table.
- tptacek 1y agoI've been on HN since 2007 and believe I have seen literally every possible permutation of this particular debate, and I don't have a stake in it. Value your equity at $0 unless you have a very good reason not to. The comment I replied to make falsifiable claim, and I felt it was worth falsifying, so that's what I did.
- singleshot_ 1y agoIf one successful exit teaches you every trick in the book, I understand why I know so many masterful M&A attorneys who didn’t go to law school.