Is equity worth caring about?

Question

All these startups talk about equity all the time but how much have you ever cashed out from by selling shares of a startup you worked for?

Accepted Answer

Yes BUT you shouldn't take a job only for equity unless you're suuuuper interested and it's a passion workplace for you. Equity in most cases will be worthless so you need to be good with what you're getting for normal compensation if it all goes to shit.

Answer

Equity is the gravy, not the meal. I've been through two exits and made money off both, but for context I made more of a moderate sized deal than I did off exits. The only route to real wealth off equity is to be the FIRST salesperson, which comes with its own risk.

Answer

Yes and no. Options are a funny beast because when you join, you plan to stay until there is a liquidation. The moment you don't see an immediate path to liquidation, combined with a better offer, you decide to jump ship. However, the company extends you the option to purchase your vested options for 90 days (in most cases). That offer means nothing if you can't afford to purchase the vested pool, and most companies I've worked for don't let you take partials.

Answer

If you're an SDR or AE, 99% of the time it's not going to turn into anything substantial. It's not really a perk worth caring about unless you're insanely early on or super high up

Answer

Equity is the gravy, not the meal. I've been through two exits and made money off both, but for context I made more of a moderate sized deal than I did off exits.

GlenRoss

Is equity worth caring about?

Does equity really matter?

9 comments

GlenRoss

Is equity worth caring about?

Does equity really matter?

9 comments

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