20yrs_no_equity

24 ms·

1. 181.▲
   by 20yrs_no_equity 10y ago

   Employees take more risk. Each one is putting in an amount of money equal to an angel, often with options that give them far less compensation compared to that angel. You can't work for 10 companies so all your eggs are in one basket
2. 182.▲
   by 20yrs_no_equity 10y ago

   I've seen anti-dilution clauses in founder documents, and really you should have one that limits dilution under certain circumstances (so you don't get arbitrarily or selectively diluted out.) They are probably extremely rare for
3. 183.▲
   by 20yrs_no_equity 10y ago

   Except that you can pay $1 for a lottery ticket with long odds of a $100M return, here you are paying $70k for a $1M lottery ticket with equally long odds of return.
4. 184.▲
   by 20yrs_no_equity 10y ago

   If it's worthless, and you're taking below a market salary, and you're working much harder than you would have to at a company paying you that market salary... then you're getting a raw deal. Better to get the market sal
5. 185.▲
   by 20yrs_no_equity 10y ago

   So, I've been working for startups for a long time. Finally I've reached two "rules"- - Be a founder - Restricted Stock Units or Preferred Shares are the only way to go. Options are way slanted against employees. If y