Thread: Analysis of Startup's as an Employer Please read these warnings if you are considering working at a startup. These warnings are generalizations, and I understand they do not apply to every startup.
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No one at the startup is actually aware of how equity or options function.
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The startup uses this asymmetric information gap to lead employees into thinking their compensation is higher than it actually is.
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Startups scale by hiring externally instead of promoting internally.
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VC's often invest in hundreds of startups, giving little time or energy to each specific startup. The startup is a part of a speculative industry bet, not a company specific bet.
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Many startups are side projects of people from big tech, whose livelihoods are not dependent upon success, leading to a skin in the game problem.
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A lack of accountability leads to a lack of a unifying narrative.
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A disjointed narrative forms around the self-serving interests of middle managers.
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High turnover leads to a justified individual selfishness.
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A cutthroat environment exacerbates the employee turnover problem.
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Startups invent new positions to give jobs to the friends of executives ready to cash in on securing VC funding.
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And *every* SV startup gives options equity. Otherwise everyone would be working for a big tech co - the salaries are higher.
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Do a simple search on angelist and you will find that the vast amount of job positions available at startups offer no equity or options.
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Untrue in SV. You can exercise options and sell your stock if you can find a buyer and then the company usually has a right of first refusal to buy them instead at the price offered.
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I’m aware of firms such as Laidlaw Co that have a whole business model around buying equity from employees. But that is IF you are granted options or equity. If you do a simple job search on Angelist, the vast majority offer no options or equity for most positions.
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