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A comment on LivingSocial: Employees' and Founders' Common Stock Now Worthless. Parent comment

Re:LivingSocial: Employees' and Founders' Common Stock Now W... by fleitz on Thursday February 21, 2013 @02:41AM (#5256053)
What risk?

Did they forget to incorporate and will be personally liable for the debts?

They took the risk of renting out a couple $5 a month servers, and buying a domain?

The last startup I was at I had 33 times the equity a guy hired a month later did. I didn't take anymore risk, I just negotiated better and first.

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Re:LivingSocial: Employees' and Founders' Common Stock Now W... by eropple on Thursday February 21, 2013 @02:51AM (#5256083)
Were your founders taking a salary from the jump? I suspect not; maybe your situation was out of the ordinary, but most founder types I know work pretty long hours well before seeing a dollar out of it.

Opportunity costs are a form of risk; being paid a salary reduces (or eliminates) those opportunity costs and thus reduces risk.

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