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I would say as a general rule, you either need to be in the A round of something REALLY big to survive dilution, for an acquisition. The alternative is that you
by gpapilion 12y ago
I would say as a general rule, you either need to be in the A round of something REALLY big to survive dilution, for an acquisition. The alternative is that you join a public company or soon to be, that will have a very high market cap.
Big companies routinely pay equity packages in the $200k-$1m range for senior people. Some just pay you in cash, and let you make the choice on how much equity you're up for.
I've been in 3 liquidity events, one which was a nice bonus for 4 years, one which I didn't get anything, and the last which has worked out very well for me.
- Eridrus 12y agoCould you give some more info on what typical dilution looks like from Series A to an exit?
- gpapilion 12y agoIt depends on the structure of the deal, and varies. The larger worry for most employees would be liquidation preferences. The investors tend to protect themselves, and often times this requires a 2-3x return before an common stock sees any money.