Re:Startups Rejecting Venture Capital
by dunpeal on Friday January 11, 2019 @02:36PM
(#18886158)
> Not necessarily, as talents at that level which are valued in top tech may be different than talents at that level that are valued at growing startups.
I worked at both. Talent overlap is quite high, far higher than is commonly assumed.
> There a variety of companies that pay top dollar for talent, straddling early stage startups all the way through established companies.
I worked in startups for many years, and most of my friends still in the field are either founders or C-level execs. They are fully aware of the top compensation for top engineers in startups presently. Startups don't match top tech comp currently. Unless you factor in the options as a sure thing, and the startup ends up exiting at unicorn levels.
> Many people put 0 value on startup equity. Those people decrease their lifetime EV through misconceptions of statistics.
This is a reflection of how many people have spent precious years of their career working for startups, and generally seeing 0 return on these options.
It's also a reflection of the perceived lack of control over this sort of deferred compensation, and various nasty dynamics that often snatch value away from rank-and-file employees, even at the last minute or past it. See the LinkedIn exit and their infamous clawback policy.
Startup options have earned this reputation for 0 value over a decade of overhype and underperformance. Far too many talented people were promised the sky and ended up with nothing after years of hard work.
I worked at both. Talent overlap is quite high, far higher than is commonly assumed.
> There a variety of companies that pay top dollar for talent, straddling early stage startups all the way through established companies.
I worked in startups for many years, and most of my friends still in the field are either founders or C-level execs. They are fully aware of the top compensation for top engineers in startups presently. Startups don't match top tech comp currently. Unless you factor in the options as a sure thing, and the startup ends up exiting at unicorn levels.
> Many people put 0 value on startup equity. Those people decrease their lifetime EV through misconceptions of statistics.
This is a reflection of how many people have spent precious years of their career working for startups, and generally seeing 0 return on these options.
It's also a reflection of the perceived lack of control over this sort of deferred compensation, and various nasty dynamics that often snatch value away from rank-and-file employees, even at the last minute or past it. See the LinkedIn exit and their infamous clawback policy.
Startup options have earned this reputation for 0 value over a decade of overhype and underperformance. Far too many talented people were promised the sky and ended up with nothing after years of hard work.