this post was submitted on 09 Aug 2025
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The vast majority of people who start at the beginning of a startup will receive equity, so they are also co-owners.
Maybe for employees like 1-5. Beyond that is rapidly diminishing amounts of equity. I was employee #49 and got like 40,000 ~~shares~~ options (that I had to buy)
And even if you are like employee #3, the actual owner and investors get more than you
Exactly, there is a place in the world for startups burning 80 hr/wk. Just compensate the people who are doing that adequately with equity, and hire risk takers who want that kind of risk.
I agree in principle that start up employees can be incentivized better than the usual wage or salary slave.
There is always a big butt, though.
Non-capital investors almost always get shares of a lower class that can be denied a share of any future revenue from a sale of the company or god forbid they get real revenue.
These term “Hollywood accounting” exists for a reason and skepticism about the real value of lower class shares is very valid.