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Actually, this is only a problem for un-founded startups - but if you don't have the money, you should at least have the technical expertise necessary to create
by tomp 12y ago
Actually, this is only a problem for un-founded startups - but if you don't have the money, you should at least have the technical expertise necessary to create the software for your start-up for the next 6 months or so (before you get to a Proof-Of-Concept stage, and can get investors). When you get the money, it's almost always a problem of just offering enough money to offset the risk of a startup failing/the team not working out.
- spinlock 12y agoThat's typically not done because it means your burning cash at a rate that adds "unnecessary" risk to the business. This is why early employees are paid $75k instead of $150k and are given equity in the business. It greatly increases the probability of a successful outcome. Paying $150k will most often lead to a 12 month run then winding down the company. That's not really in anyone's interest.
- tomp 12y agoThat's a very good idea... as long as there's enough equity (there usually isn't). For 75k/year, I want at least 10%, and even better, co-founder status. While 75k and 1% is in the founders' interest, it certainly isn't in the employees'.
- onion2k 12y agoYou can never make claims like that before the fact. Every company, group of founders, group of investors, and opportunity is different. I'm certain there's a startup out there who you would take 75k and 1% from because you really believed the business would change the world and exit for Facebook money. You'd be crazy not to.