In startups we are all sold to take a lower paycheck and we could make it big but all my data points point to non executives usually making out with the same if not less than working at FAANG Here are my data points. All acquisitions by major corporations or unicorn companies. Acquisition 1 - nothing Acquisition 2 - 150k Acquisition 3 - 350k Acquisition 4 - 300k Usually equity for an experienced hire will start at around 300k for your first 4 years from my experience at faang and only go up from a decent base. Why the f does anyone do startups?
These are a mix of my experiences and friends
Some people like the creative process. All those murals you see all over San Francisco’s older neighborhoods were done by artists for free. Imagine that — creating without money even being a goal. Your post suggests money is the ONLY goal. My guess is people in startups have money as a goal but place value on creative expression as well. Good for them.
I just don’t want to work at Walmart when I’m retired. I’m soft like that.
Some people are creators, some people are takers. Nothing wrong about being honest with what you are and which brings you joy. If money brings you joy, chase money. I hear prostitution can be very lucrative, too.
Also their bosses and investors usually just have money as their goals. Just not money for employees.
People want to join next Google or Facebook
I thought it was obvious. The expected value of working at a startup is always less than FAANG
I figure I just want more data points to reinforce
Unless you're pre series A at a for sure decacorn (extremely unlikely), I don't think you'll make more. ALSO remember TVM, and the huge risk of it all going to zero.
I was part of an acquisition. I had a 1% stake but the vesting of that 1% was such that I only ended up with .75%. Company was sold for 50M so I got 375k. Wish I got the other 125k. ¯\_(ツ)_/¯
This is because a 25% dilution.
Basically you had a huge stake in a company with a decent exit. Top 5% of outcomes. And you got.. what any SDE would get in RSUs in a a couple years in big tech.
I’m at a unicorn with .3% and my options are worth >10m
How many employees when you joined?
Which company?
1.5M in IPO, 3 years after joining
Worked for a startup around 2000 as an entry level employee. Four years of crushing, soul destroying overtime. But company was sold and we plebeians got 65k - basically making us whole for all that OT, but not much more.
My last company was similar. The people that didn’t have shares of the company got a measly 10% bonus. Meanwhile the owner goes out and buys million dollar properties. Feels bad to have worked so hard and get so little while the top gets paid.
How much stock did you have and how many diluted shares ?
Would be way to complicated to go through all the details but if you are early non executive it’s usually under a half percent
What did the company evaluate for ?