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The solution to this is to get more cash instead of equity, and don't stick around after acquisition. If you're looking to work as an employee at a startup to

The solution to this is to get more cash instead of equity, and don't stick around after acquisition. If you're looking to work as an employee at a startup to get rich, good luck with that. Early stage startups pay less than 50% of normal pay, and options are a fraction of a percent of the company. Unless the startup sale goes into 9 figures, which is probably less than 1% of all startups, you'll at best see a nice bonus. Later stage startups are just like big companies. With HR, managers, process, meetings, and the like. I don't work at startups for money. I work at a startup for the small team size, for the massive impact you make as an individual, for the team building experience, the hard times and the good. You get to meet your customers, you get to see a feature you've built contribute directly to more people signing up. Being a software engineer at a small startup is the best job in the world, and it doesn't pay well. All the things I like about being at a startup are things that don't exist at big companies. So when the eventual acquisition happens, I help transition because I owe it to the team, but then I'm out.

lostcolony 13y ago
"I work at a startup for the small team size, for the massive impact you make as an individual, for the team building experience, the hard times and the good." I have that at a large company. My team owns a project, we have 3 devs, an architect, a QA, and a team lead. We even get to meet our customers, though as it's an internal project, for another business unit, 'people signing up' isn't quite as meaningful. But you get to see people whose jobs suddenly become much easier and the excitement that can cause.
paulhauggis 13y ago
"I work at a startup for the small team size, for the massive impact you make as an individual, for the team building experience, the hard times and the good." I would rather build my own company. Why would I want to toil my life away at a terrible wage and extremely long hours, only to get a fractional percentage of the payout if the company is bought out? This is why I don't work at startups.
- leobelle 13y ago
  Building a company requires skills that many, including myself do not have. You have to be able to sell. You have to be good with people. You have to be able to convince at least your friends to work on the idea with you. You have to have a good idea. And, you in the end you stop coding, and start worrying about business things. I like to code. I wouldn't mind owning my own business, but I haven't the skills and I haven't an idea so good that it would compensate for my lack thereof.
colinbartlett 13y ago
I've always laughed at startups that offer me a big piece of equity in exchange for a lower salary. Why on earth would I want a worthless piece of paper in exchange for some very valuable pieces of paper?

lostcolony 13y ago

"I work at a startup for the small team size, for the massive impact you make as an individual, for the team building experience, the hard times and the good." I have that at a large company. My team owns a project, we have 3 devs, an architect, a QA, and a team lead. We even get to meet our customers, though as it's an internal project, for another business unit, 'people signing up' isn't quite as meaningful. But you get to see people whose jobs suddenly become much easier and the excitement that can cause.

paulhauggis 13y ago

"I work at a startup for the small team size, for the massive impact you make as an individual, for the team building experience, the hard times and the good." I would rather build my own company. Why would I want to toil my life away at a terrible wage and extremely long hours, only to get a fractional percentage of the payout if the company is bought out? This is why I don't work at startups.

leobelle 13y ago
Building a company requires skills that many, including myself do not have. You have to be able to sell. You have to be good with people. You have to be able to convince at least your friends to work on the idea with you. You have to have a good idea. And, you in the end you stop coding, and start worrying about business things. I like to code. I wouldn't mind owning my own business, but I haven't the skills and I haven't an idea so good that it would compensate for my lack thereof.

colinbartlett 13y ago

I've always laughed at startups that offer me a big piece of equity in exchange for a lower salary. Why on earth would I want a worthless piece of paper in exchange for some very valuable pieces of paper?