2 ms·
Seems there is logically a space for properly salaried startup founders with significant bonuses for hitting the mega-heights. If there are people you have suf
by josephlord 14y ago
Seems there is logically a space for properly salaried startup founders with significant bonuses for hitting the mega-heights. If there are people you have sufficient confidence in (2% chance of getting to $100M) then give them get rich slowly salaries with bonuses for hitting the VC friendly valuations (bonus on valuation/investment rather than exit). Obviously in this scenario the founders would have little equity - more first employee level.
This model could make more willing to try and bring more big payouts in (VCs would have more equity) although it would cost them more on the ones that don't get there.
The downsides are if the founders need to make it work is what gets startups off the ground in the first place or if the VCs feel more need to meddle.
An alternative is to stick to the current model but for the VCs to be ready to buy out the founder with the early exit option and then employ them from that point with MUCH smaller equity for the founder.