Hacker News new | past | comments | ask | show | jobs | submit login

I was employee 18 at a startup recently acquired by Google. Maybe not super early, but I was able to make big contributions that had a large impact on our eventual acquisition. It was a fun ride but I won't be doing it again for one main reason: startup equity distribution makes zero sense for early employees. Founders get 20+ times the equity. Yes they take more risk and work harder, but they're not taking 20 times the risk or working 20 times as hard.

Also there's a bizarre reluctance to show employees the information they need to value their equity, like number of shares authorized/outstanding/issued, existing liquidation preferences, or the whole cap table. Although it worked out fine for me this time, I will never again take equity compensation in a small company without access to the cap table.




The second part is something I think we can easily fix. Transparency about how much of the company you own needs to be a given with any good startup.


Should be law that to hire someone and pay them equity, you must have the employee sign that they've seen the cap table. Maybe even on a yearly basis.


jwz had to threaten Netscape with a lawsuit to see any share information, and that was in the mid 90's.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: