Re:Reflecting on My Failure to Build a Billion-Dollar Company
by wolco on Thursday February 07, 2019 @03:40PM
(#19108381)
The employees got paid less because of vesting. It is a gamble and this story shows different outcomes for employees. Pinterest paided off and gumtree didn't.
In both cases the founder made between 20-50 million.
Re:Reflecting on My Failure to Build a Billion-Dollar Company
by austenallred on Thursday February 07, 2019 @03:55PM
(#19108508)
Both employees and founders vest.
Founders own more of the company than employees, of course. The good news is anyone can start a company!
Re:Reflecting on My Failure to Build a Billion-Dollar Company
by wolco on Thursday February 07, 2019 @06:40PM
(#19109812)
Agreed but if you choose to be an employee opt for higher salary over vested future value for better game theory results.
Re:Reflecting on My Failure to Build a Billion-Dollar Company
by austenallred on Thursday February 07, 2019 @09:47PM
(#19111058)
Unless the company is successful, in which case you should do the opposite
That's my best guess, yes.
> Meanwhile his investors lost all the millions they invested.
Well, some sold his equity back to him for $1, so yes.
> His employees lost all the time and vesting.
Well the employees could have exercised their grants when they were laid off, but I doubt they were inclined to double down on what was then a failing company.
> That's why it's way to dangerous to just follow any guy and do a startup and waste a few years of your life.
I mean, the employees got paid all along the way, and probably not that much less (if any) than they would have working for another company, and they got to work on something they loved.
Sad that it didn't work out. These things are risky, but having worked at startups and not gained anything from the equity I would do it again in a heartbeat.