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> So, why the hell would anyone leave that much money on the table? If you're asking me to do something crazy, you better be willing to pay for it. At most ear
by 7Figures2Commas 12y ago
> So, why the hell would anyone leave that much money on the table? If you're asking me to do something crazy, you better be willing to pay for it.
At most early-stage startups, there is no money on the table. If you want to maximize your earnings, focusing your job search on pre-Series A startups is a horrible waste of time.
The OP seems to be asking for startup excitement, reasonable hours, high salary and meaningful equity. At a pre-Series A startup, you might be able to find two of the four.
> .5% equity, especially when it will end up being diluted, is a fool's game.
Rhetorical exercise:
1. What's .5% of $0?
2. What's 2% of $0?
3. What's 10% of $0?
Equity at early-stage startups is a fool's game.
- deleted 12y ago[deleted]
- aledalgrande 12y agoYes, 5% of $0 is still $0.
- ant6n 12y agoThe expected value of a startup, even pre-Series A, is not 0.
- 7Figures2Commas 12y agoYou seem to be confusing the expected value of a startup with the value of one's equity. There is a reason that the vast majority of vested stock options go unexercised when employees leave companies. Additionally, you are not factoring in liquidation preferences. Rhetorical question: what's 10% of $10 million when your investors put in $5 million and have a 2x liquidation preference?
- ant6n 12y agoYou seem to not understand the notion of expected value. If the strike price is a concern, it could probably be negotiated down. I had the impression the they have generally gone down anyway.
- 7Figures2Commas 12y ago> If the strike price is a concern, it could probably be negotiated down. Please ask a qualified accountant about Section 409A of the tax code and what happens if you're granted stock options at less than fair market value.