Re:Strapped startup declines acquihire, Apple poaches key en...
by ChuckMcM on Monday October 05, 2020 @01:44AM
(#24684855)
Today perhaps. Pre-IPO stock from 1980 to roughly 2008 was always a huge multiple over BigCorp stock. That largely evaporated in the Unicorn bubble AFAICT. I suspect because pulling the value out pre-IPO was a better deal for investors.
Even today restricted stock grants (RSUs) serve the same purpose and act as a multiplier on compensation which is "better" if the company does better and "worse" if the company loses out to competition.
I'm happy with invalid not competes, but equity? How does that protect startup X against poaching from an already very successful company like Apple? They can offer (example) a real million now against the promise of millions in 2025. Or real millions against promised millions.
And even for real money vs real money they can outbid the startup easily.