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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Replying to @patio11
This feels to me like something you engineers might not understand so I guess I have to shout it from the rooftop.
1 reply 3 retweets 12 likes -
Replying to @patio11
First example: vesting. The thing represented to the employee as "ownership" is actually "ownership contingent on you being here in 4 years"
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Replying to @patio11
An employee can be fired at will (typically), loses 100% of equity of that happens in first 12 months. There is no way to remove an angel.
2 replies 6 retweets 14 likes -
Replying to @patio11
Investors have a variety of rights w/r/t firm, including information rights. 1% angel prob knows cap table, revenue, impending biz sale, etc
1 reply 5 retweets 13 likes -
Replying to @patio11
Angels get preferred stock, often with minor preference. Workers get common. Common worthless in a variety of failure-case liquidity events.
4 replies 3 retweets 11 likes
@MarcEglon Both will be diluted over time; mechanics not necessarily identical, particularly with regards to failure cases.
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