A startup is an idea, and then it’s an machine for making the idea and a machine for getting people to use the idea. A huge amount of what people mean by ‘a great entrepreneur’ comes in 2 and 3. Especially 3.
-
-
That’s really not true. VCs force founders to allocate employee equity pools. (I know; it’s been a requirement of every term sheet I’ve gotten). And that pool gets allocated—there’s very little incentive not to allocate it, and it’s critical in recruiting employees.
-
Allocation is critical in recruiting high level employees. But high level employees are not the majority of employees. All you have to do is a quick search on angelist and you will see that the vast majority of positions do not offer equity or option grants.
-
The vast majority of positions are not high-skill, so this makes sense. But positions that get profit-sharing and high variable bonuses in enterprises get equity in startups. Given that that’s the primary choice, there’s no real disadvantage to the startup here.
-
I'm attempting to dispel the myth that startup life is this grass is greener situation. For the vast majority of employees, it isn't. They miss out on key structural benefits of big company corporate development. If you're a high skill employee, it could be a great situation.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.