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They're second-class, except for celebrity founders who call themselves "serial entrepreneurs" and can regard fundraising as an afterthought. Having 60% of one
by michaelochurch 12y ago
They're second-class, except for celebrity founders who call themselves "serial entrepreneurs" and can regard fundraising as an afterthought.
Having 60% of one startup, and having to do all the work, is inferior to having 20% of ten startups, and having power but no responsibility to any single one of them. Founders have more power within their specific companies (if things are going well) but investors have the power that matters, because they're diversified and involved in a large number of things.
- 3pt14159 12y agoA partner at a VC will generally only vouch for one or two startups a year. They are responsible for allocating capital, not directing employees. Furthermore, the partner at a VC will generally not have anywhere close to 20% of ten startups (usually it's 15% to the fund). They have a draw off of the fund (which they have to raise) and they have a certain amount profit if the fund is successful. I do agree with you that engineers (especially the first 4 hires) generally get the worst deal of all.