Is Startup Equity a Bad Deal?
Imagine joining a startup as employee number 10. Your salary is a bit below what the market pays for your role, but, in exchange, you get equity. How much? 0.25% of the company to be exact. You do the math in your head—if the company sells for $100M in a few years, you'll make $250,000. Not bad, right? Wrong, and for quite a few reasons. Once you take into account how startup equity typically…
We haven't written up this one. Of Dollars and Data has the full story — the link below goes straight to it.