Timeline for How does start-up equity end up paying off?
Current License: CC BY-SA 3.0
15 events
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| Mar 4, 2015 at 21:19 | comment | added | farnsy | Issuing new equity is not analogous to inflation. New shares dilute existing voting power but should not generally reduce share value because they are exchanged for resources of equal value. You are entitled to a smaller piece of a bigger pie any time your shares are diluted and the two effects cancel each other out. I realize your intention is simply to discourage working for equity, but you should be factual as you do so. | |
| Mar 4, 2015 at 5:06 | comment | added | nobody | This 100% this. After being in a startup this is the only advice I have for anyone thinking of going into that game: Get. Paid. | |
| Mar 4, 2015 at 4:41 | comment | added | corsiKa | Anyone who is planning in investing a business of any kind, whether it's a tried and true Dow Jones stock, or a "pre-revenue" startup, should do their due diligence to understand both the risks and the rewards with the venture they're about to invest in. The "how" it pays off might be different for every invididual company, but the process is the same: you research, you ask questions, you review business plans, and if you think the odds are in your favor, you invest. | |
| Mar 3, 2015 at 14:56 | history | edited | Andy | CC BY-SA 3.0 |
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| Mar 3, 2015 at 14:52 | comment | added | Andy | @SteveJessop Exactly. | |
| Mar 3, 2015 at 14:52 | comment | added | Andy | @jamesqf No; founders have an incentive to start things still. But the OP would just be an employee with too little of a share to ensure his share doesn't get diluted even more than it already is. If someone is personally founding a startup, sure, work for no salary to get going. But that's not the OPs case. The OP is basically going to be working for free, on the off chance he might someday later get something for it, and no promises about whether he'll get fairly compensated. | |
| Mar 3, 2015 at 9:27 | comment | added | Steve Jessop | Investing in one startup is risky, investing in 20 startups is safer if you know what you're doing. Hence, venture capitalists. | |
| Mar 3, 2015 at 7:49 | comment | added | Chris Hayes | @jamesqf If your goal is starting something, by all means, do a startup. If your goal is a reasonable return on your investment, find somewhere else to put your money. | |
| Mar 3, 2015 at 3:34 | comment | added | Criticizing Israel not allowed | @jamesqf no, by Andy's logic, nobody besides speculators should ever invest in a startup. Which is pretty much correct. | |
| Mar 3, 2015 at 3:07 | comment | added | jamesqf | @Andy: Sure, but using your logic, no one would ever start anything. | |
| Mar 2, 2015 at 23:10 | history | edited | Andy | CC BY-SA 3.0 |
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| Mar 2, 2015 at 23:05 | comment | added | Andy | @jamesqf Most startups fail. You'd probably have better odds in a casino. | |
| Mar 2, 2015 at 18:40 | comment | added | ChrisInEdmonton | "you might never see it". It's extremely likely you'll never see it. | |
| Mar 2, 2015 at 18:35 | comment | added | jamesqf | Not working for free depends on the situation. As an ordinary job, no. Doing it on the side could work out, as for instance you'd joined up to help a couple of guys build computers in their garage, back in the '70s. But realize that, like any entrepreneur, you're gambling your work against the chance of success. | |
| Mar 2, 2015 at 15:52 | history | answered | Andy | CC BY-SA 3.0 |