4 ms·
Really? This is definitely not true in my experience. Most startup employees I've talked to absolutely know that 1%, 10% 30%, whatever, of nothing (or practical
by Smudge 12y ago
Really? This is definitely not true in my experience. Most startup employees I've talked to absolutely know that 1%, 10% 30%, whatever, of nothing (or practically nothing) is still nothing. They're not in it for the rare chance that their 0.5% or less earns them upwards of $1M.
- arcatek 12y agoI work in a startup, and I know that my equity is peanuts, but I have really no idea about how to use it. Someone should make a talk about it.
- Ixiaus 12y agoThere's a lot of material you can find and read about online. Please do it. Your "equity" is most likely "options" which means as you vest them (usually on a vesting schedule, look at your contract) you have the option to purchase (or exercise, because some types of equity can be rewarded without buying them) shares at a specified strike price. In finance, an option is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. I've been a founder, of multiple companies. You're most likely being screwed but the founders are most likely going to be screwed too; dilution sucks unless you've got low burn and high revenue (which gives you an upper-hand in dealing with investors). Generally as a founder too, the number one killer is running out of money, so when the funding ball starts to roll we (the founders) typically ride it hard as we can, which unless you're an established 10x-making-founder, means the founders get diluted hard. One of these days I want to make enough from a venture to build one with an upper-hand on the investors, I definitely want to create an environment where people are having fun, working hard, and also are rewarded handsomely with ownership in the company. Igalia is an inspiring example I think.
- mwarkentin 12y agoFred Wilson from USV had a few posts about it: * http://avc.com/2010/10/employee-equity-options/ http://avc.com/2010/10/employee-equity-options/ * http://avc.com/2010/11/employee-equity-how-much/ http://avc.com/2010/11/employee-equity-how-much/ * http://avc.com/2010/11/employee-equity-vesting/ http://avc.com/2010/11/employee-equity-vesting/ * http://avc.com/2010/09/employee-equity-2/ http://avc.com/2010/09/employee-equity-2/ * http://www.atguy.com/2012/04/employee-equity-by-fred-wilson.html http://www.atguy.com/2012/04/employee-equity-by-fred-wilson....
- swartkrans 12y ago0.5% is way more than most employees get. 0.5% is like employee #1 or #2.
- deleted 12y ago[deleted]