|
| ▲ | FreakLegion 2 days ago | parent | next [-] |
| Most startups are open to trading cash for equity if you ask. Many even offer it explicitly. Investors also encourage it, e.g. see Index's Rewarding Talent guide: https://www.indexventures.com/rewarding-talent/balancing-cas.... When I make someone an offer, I give them a spreadsheet where they can plug in different salaries and equity stakes to see outcomes based on future funding events, valuations, and exit scenarios. Without exception the people who've leaned into equity have turned out to be the best performers and ended up with higher salaries anyway, but a majority favor cash up front. |
| |
|
| ▲ | sokoloff 3 days ago | parent | prev [-] |
| Be the change you want to see in the world? As you find reasons to object to that, many of those reasons are likely the same shared by others and make this a vastly less common arrangement, because someone has to take on the massive initial risk to start and fund the business through the unavoidable period of initial losses and probably wants to see a way to having a compensating upside in the event of success. |
| |
| ▲ | wahnfrieden 3 days ago | parent [-] | | Well now you're talking about what investors want (including if the founder is also the investor sure). That's a reflection of the funding climate | | |
| ▲ | sokoloff 3 days ago | parent [-] | | I'm talking about the financial realities of starting a company from scratch, which impacts how many companies get started in what form and might be a significant part of the explanation why you aren't seeing as many worker-owned companies as you express a preference for. Brainstorming and figuring a way to address that might be a way to help you mold/nudge the world towards your preference. |
|
|