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The culture here is higher risk and geared towards building the next unicorn companies. That is why equity plays such a significant role. > Their ownership is

by abalone 12y ago

The culture here is higher risk and geared towards building the next unicorn companies. That is why equity plays such a significant role. > Their ownership is purely symbolic, in a relative sense You're downplaying the significance of a 0.5-1% stake. 1% of the next Facebook would definitely not be purely symbolic. Late stage VC investments are lucky to get a few percentage points in a company; this is the only opportunity in the company's life where a non-c-level employee could get that kind of a stake. It is a lot less than what founders get, but if you don't like that you can always try your hand at being a founder yourself. There are of course countless anecdotes that can be told about how someone's equity stake didn't amount to much. Because the majority don't. But we are geared towards trying to be a part of something that is truly very big and world changing, and that is riskier.

UK-AL 12y ago
but its not going to be 1% at that stage, its going to have far far more dilution as you raise more money.
- abalone 12y ago
  True but my point still stands even if there is dilution. 0.5% of Facebook would still be worth a billion dollars. Even at a company that's 1/100th as successful as Facebook that's a $10M stake.
greenyoda 12y ago
"1% of the next Facebook would definitely not be purely symbolic." But what percentage of companies are going to be the next Google or Facebook or Apple? Companies that make their founders billionaires and their employees millionaires are very, very rare. If you were an early employee of any of these companies, you probably couldn't have predicted how big these companies would be today.
- abalone 12y ago
  There are also exits along they way via acquisitions that can produce good outcomes. But overall yes, it's true that it's quite rare for a startup engineer to become a multi-millionaire based on a few years work early in their career. However it does happen and it's an opportunity uniquely available in the startup sector. The great thing is you have a choice. You can go work for an established company and make $150k+ or a startup that you believe in and would have fun at and maybe have a shot at really big money 5-10 years from now. Up to you.

by abalone 12y ago

UK-AL 12y ago

but its not going to be 1% at that stage, its going to have far far more dilution as you raise more money.

abalone 12y ago
True but my point still stands even if there is dilution. 0.5% of Facebook would still be worth a billion dollars. Even at a company that's 1/100th as successful as Facebook that's a $10M stake.

greenyoda 12y ago

"1% of the next Facebook would definitely not be purely symbolic." But what percentage of companies are going to be the next Google or Facebook or Apple? Companies that make their founders billionaires and their employees millionaires are very, very rare. If you were an early employee of any of these companies, you probably couldn't have predicted how big these companies would be today.

abalone 12y ago
There are also exits along they way via acquisitions that can produce good outcomes. But overall yes, it's true that it's quite rare for a startup engineer to become a multi-millionaire based on a few years work early in their career. However it does happen and it's an opportunity uniquely available in the startup sector. The great thing is you have a choice. You can go work for an established company and make $150k+ or a startup that you believe in and would have fun at and maybe have a shot at really big money 5-10 years from now. Up to you.