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David Karp has 25% of Tumblr [1], and makes it clear, that to start off with - it really was just David and Marco. "...Marco Arment, Karp’s first and, for a lo

David Karp has 25% of Tumblr [1], and makes it clear, that to start off with - it really was just David and Marco. "...Marco Arment, Karp’s first and, for a long time, only employee at Tumblr." http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-david-karps-800-million-art-project/ http://www.forbes.com/sites/jeffbercovici/2013/01/02/tumblr-...

aaronbrethorst 14y ago
"Employee" Wow, that's a kick in the balls.
- tptacek 14y ago
  I don't follow. Also: Marco calls himself an "employee" as well.
  - ghshephard 14y ago
    I think the suggestion is that Marco probably didn't have a sizable equity chunk - I.E. the 70/30 split might be generous - and it very well might have been something closer to 95/5. I've listened to pretty much all his podcasts, and while Marco is pretty wide open when it comes to financials (in one memorable episode, he detailed pretty much every line-item costs associated with instapaper, and he's been even more open with "The Magazine" - discussing all of the revenue and cost elements), I don't ever recall him discussing his equity stake in tumblr, though, he did mention that he's been chatting with David recently...
    - ijverig 13y ago
      Where did Marco talk about The Magazine revenues and costs?
    - tptacek 13y ago
      If he didn't put money in and took a near-market salary from day 1, 5% is extremely generous.
      - ghshephard 13y ago
        Agreed if he were an average employee, but, (A) he was doing pretty much all the heavy lifting early on - to some degree tumblr v.1 was the creation of Marco, (B) he made it clear he took less money because he could "use whatever keyboard he wanted, and had more than 3' of desk space" and (C) It's not that generous when there are only two people working on a project. Also - he's a talented developer, and tends to get shit done (as demonstrated via Instapaper, ATP, The Magazine) - and those people command a higher return. Also - David Karp wasn't a well known entrepreneur back in the day, and Marco came in at the genesis. 5% would have been generous if it had been after a round of funding, but pre Series A/Angel Round, it's what any top level developer should ask for when going into the same situation as Marco. Tumblr might not have existed where it not for him.
  - aaronbrethorst 14y ago
    Everywhere else, he's described as a cofounder. Being shrugged off as an employee would be insulting.
    - evan_ 14y ago
      Marco is very clear about it here: https://twitter.com/marcoarment/status/335483318311194624 https://twitter.com/marcoarment/status/335483318311194624 and it doesn't sound like he harbors any ill will, regret, bad feelings, negativity, or insult by the distinction.
    - ghshephard 14y ago
      Interesting question - would you rather be a cofounder with 5% equity or an employee with 6% equity. (In the tumblr case, worth about $10mm more). Given that most (everyone?) would rather be the employee with 6% equity, it brings into focus what's really important at the end of the day. All else equal, the founder/cofounder label might be worth something to the ego, but, having been one of 100 or so "founders" of Opsware, and also having worked at a company where the "Founding CEO" joined almost a year after I did, I've grown to recognize that "Founder" is nothing more than a label, doesn't really signify that much. Total Compensation Package (inclusive of equity) is what's important. [Edit: I guess some people might consider "Founder' of a successful company to be a proxy for their reputation, and reputation is very, very important, as it can be leveraged during salary negotiations, or, raising money/hiring. So, from that perspective, being known as the "Co-Founder of Tumblr" might be relevant]
      - emiliobumachar 14y ago
        I see an analogy to the "Vice President" label in big companies.
    - tptacek 14y ago
      "Founder" is very different from "early employee". Being called an employee, when that's what you are, isn't an insult.
      - 13y ago

aaronbrethorst 14y ago

"Employee" Wow, that's a kick in the balls.

tptacek 14y ago
I don't follow. Also: Marco calls himself an "employee" as well.
- ghshephard 14y ago
  I think the suggestion is that Marco probably didn't have a sizable equity chunk - I.E. the 70/30 split might be generous - and it very well might have been something closer to 95/5. I've listened to pretty much all his podcasts, and while Marco is pretty wide open when it comes to financials (in one memorable episode, he detailed pretty much every line-item costs associated with instapaper, and he's been even more open with "The Magazine" - discussing all of the revenue and cost elements), I don't ever recall him discussing his equity stake in tumblr, though, he did mention that he's been chatting with David recently...
  - ijverig 13y ago
    Where did Marco talk about The Magazine revenues and costs?
  - tptacek 13y ago
    If he didn't put money in and took a near-market salary from day 1, 5% is extremely generous.
    - ghshephard 13y ago
      Agreed if he were an average employee, but, (A) he was doing pretty much all the heavy lifting early on - to some degree tumblr v.1 was the creation of Marco, (B) he made it clear he took less money because he could "use whatever keyboard he wanted, and had more than 3' of desk space" and (C) It's not that generous when there are only two people working on a project. Also - he's a talented developer, and tends to get shit done (as demonstrated via Instapaper, ATP, The Magazine) - and those people command a higher return. Also - David Karp wasn't a well known entrepreneur back in the day, and Marco came in at the genesis. 5% would have been generous if it had been after a round of funding, but pre Series A/Angel Round, it's what any top level developer should ask for when going into the same situation as Marco. Tumblr might not have existed where it not for him.
- aaronbrethorst 14y ago
  Everywhere else, he's described as a cofounder. Being shrugged off as an employee would be insulting.
  - evan_ 14y ago
    Marco is very clear about it here: https://twitter.com/marcoarment/status/335483318311194624 https://twitter.com/marcoarment/status/335483318311194624 and it doesn't sound like he harbors any ill will, regret, bad feelings, negativity, or insult by the distinction.
  - ghshephard 14y ago
    Interesting question - would you rather be a cofounder with 5% equity or an employee with 6% equity. (In the tumblr case, worth about $10mm more). Given that most (everyone?) would rather be the employee with 6% equity, it brings into focus what's really important at the end of the day. All else equal, the founder/cofounder label might be worth something to the ego, but, having been one of 100 or so "founders" of Opsware, and also having worked at a company where the "Founding CEO" joined almost a year after I did, I've grown to recognize that "Founder" is nothing more than a label, doesn't really signify that much. Total Compensation Package (inclusive of equity) is what's important. [Edit: I guess some people might consider "Founder' of a successful company to be a proxy for their reputation, and reputation is very, very important, as it can be leveraged during salary negotiations, or, raising money/hiring. So, from that perspective, being known as the "Co-Founder of Tumblr" might be relevant]
    - emiliobumachar 14y ago
      I see an analogy to the "Vice President" label in big companies.
  - tptacek 14y ago
    "Founder" is very different from "early employee". Being called an employee, when that's what you are, isn't an insult.
    - 13y ago