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Re:Myths About Working as an Engineer at a Startup by gkmoyn on Thursday August 28, 2014 @12:48PM (#8238233)
I'm talking about the equity on day 1, not on exit day. But even on exit, the ratio is the same between founders and employees.
Re:Myths About Working as an Engineer at a Startup by kasey_junk on Thursday August 28, 2014 @01:27PM (#8238511)
Well depending on the legal setup, the company has 100% of it's equity on day 1. Founders and employees both are given options to buy said equity. That ratio is not setup with the expectation that the founders will have 60-85% of the equity in the future.
Re:Myths About Working as an Engineer at a Startup by gkmoyn on Thursday August 28, 2014 @02:48PM (#8238970)
Sorry, my original point must have been very unclear.

In a typical startup, the ratio of equity between founder and employee #1 might be 50:1 or even much more. I am always surprised that people sign up to be employees given how fast equity grants drop for every subsequent hire. And, I wonder if any company has tried more gradual equity drop-offs. For example, where the ratio between founder and early employee grants is < 2:1, for example.