3 ms·
> why do founders get so much equity and dish so little out to employees? 1. It's their company. They get 100% of the equity until they choose to sell some of
by stevewilhelm 13y ago
> why do founders get so much equity and dish so little out to employees?
1. It's their company. They get 100% of the equity until they choose to sell some of it.
2. Founders loose control of the company when they no longer own a majority stake of the equity.
3. They must sell a significant percentage of the equity when they raise money.
VCs do care about how founders spend their money, but it is in the VCs interest for a company to occasionally need to raise more money (see point #3).