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It's something we're looking into. Would be a great market But for clarity, it's generally understood the employees do not bear the same risk as the founders, w
by geoburke 6y ago
It's something we're looking into. Would be a great market But for clarity, it's generally understood the employees do not bear the same risk as the founders, who contributed months/years of sweat equity as well as actual capital. Oh and risk of lawsuits.
An employee is paid day 1 and the risk beared does not surpass opportunity cost of a paid job at a successful startup vs a failed startup.
- khazhoux 6y ago> who contributed months/years of sweat equity as well as actual capital Very often not true in silicon valley. The only sweat equity most founders contributed was toiling through coffees and get-togethers on University Ave or SOMA for a few months until they got the seed money. Then they hire engineer #1 at 1/80th their own equity. Founders at funded startups pay themselves. During an acquihire, founders get executive roles, salaries, bonuses, and equity, while "non-founders" are just back to the grind. The notion of "founder risk" in SV-style startups just doesn't exist like it did a generation or two ago.
- bonobo886 6y agooh I completely disagree, early employees are often not paid on day 1, and when they are paid, they still do bear a huge risk - often taking much lower salary than market for the opportunity of equity upside. The risk the early employee takes is often the same as the founder's, with less upside.