An angel investor who owns 1% of a company and an employee who is offered 1% of the company are not not not in materially similar positions.
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Investors have a portfolio because they know most companies will fail. Employees very rarely have 10 equity grants active at once.
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An angel who hits jackpot and invests in e.g. Twitter has many early options for getting liquid. Employees often golden-handcuffed to firm.
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@patio11 do the same rules of dilution apply to employees and angels? -
@MarcEglon Both will be diluted over time; mechanics not necessarily identical, particularly with regards to failure cases.
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@patio11 I doubt that most employees understand that they can walk away with nothing while investors get a > 100% return. -
@WindAddict@patio11 And if you *do* understand, managers prefer you not talk much to other employees about it :-) - 1 more reply
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@patio11 I agree except this. West coast deals convertible or common equity to align w/ founders. Preferred is for later / institutional.Thanks. Twitter will use this to make your timeline better. UndoUndo
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