3 ms·
Play out the numbers (assumptions completely speculative): - How much more would this person make at a big company? ($50k?) - What's the time frame for succes
by toby 13y ago
Play out the numbers (assumptions completely speculative):
- How much more would this person make at a big company? ($50k?)
- What's the time frame for success? (4 years vesting?)
- What's the distribution of possible exits? (5% chance of $100M, 30% chance of $10M acquihire, 0.1% chance of $1B)
Under these assumptions, you hit about 2.3% to make the expected values match assuming absolutely no investor preferences (which is itself silly).
It would be interesting to use real seed fund data to generate the distribution and proper salary comparisons.