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I would be surprised if even 25% of those startups had a meaningful exit. But even at 25%, we're a very long way from the lottery odds -- that comparison always
by drusenko 14y ago
I would be surprised if even 25% of those startups had a meaningful exit. But even at 25%, we're a very long way from the lottery odds -- that comparison always strikes me as quite misleading.
- hapless 14y agoAs repeatedly mentioned, a "meaningful exit" can make the founders extremely rich, and pay employees the equivalent of a routine annual bonus at a normal firm. ($5k-$25k) Candidates have no way to evaluate the value of the equity pressed upon them, but even in the case of a successful exit, it's usually quite small.
- confluence 14y agoDepends on your definition of meaningful exits, actual number of meaningful exits, and dilution between rounds. Indeed if you put a margin of safety on valuing any arbitrary startup before they get traction - EV does hit on or near zero.