HN is filled with startup bros (who want to screw the actual employees), VC adjacent brow (who want to screw the startup bros), and people who signed up for massively discounted compensation in the form of “equity” that cannot be converted into cash and can be stolen and/or devalued by the people running the business, and so acknowledging this means acknowledging the folly.
Working for a startup is inherently risky, but it’s not gambling because in gambling you can estimate the odds, and unlike gambling the odds cannot be changed after you win. Any employment contract that does not allow equity cash out at the price from the last funding round, or allows take backs, is worse than gambling, and founders that believe contracts that don’t provide those guarantees are reasonable are likely malicious and intending on doing that in future.
I do not understand a mentality that says “as a founder I should be able to get money out of the business but the people who work for me, who are also taking significant risk and below market compensation should not be permitted to do that”
I couldn't have said that better. I have seen this exact thing happen multiple times in startups, where you only really have a chance to make money if you are a founder or join really early on & hope that there is a good exit. as a regular or even senior employee you not only are helpless but also have to mentally deal with sunk cost fallacy. the problem is you (non founder) never gets rewarded for the significant risks you took working there. In investing world this is labelled uncompensated risk. which employees mostly take.
Working for a startup is inherently risky, but it’s not gambling because in gambling you can estimate the odds, and unlike gambling the odds cannot be changed after you win. Any employment contract that does not allow equity cash out at the price from the last funding round, or allows take backs, is worse than gambling, and founders that believe contracts that don’t provide those guarantees are reasonable are likely malicious and intending on doing that in future.
I do not understand a mentality that says “as a founder I should be able to get money out of the business but the people who work for me, who are also taking significant risk and below market compensation should not be permitted to do that”