[cynicalkane]

There's a point to this if you get a good startup job offer, but probably 95% or more of startup job offers are terrible. "You'll earn 50% below market, but if we make billions, your options will be worth a few hundred K per year once we have a liquidity event." No thanks.

For big companies that pay market rates, stock can be valued, and GAAP actually requires it. So they're not saving any money on paper paying you in stock. Your total comp is their total comp.

Usually, when you get a good offer including stock, it's from a company with worthwhile stock. Most startup offers aren't worth it even in wildly good scenarios.

[yahna]

But they are totally taking on all the risk and hard work. YOu just have to work insane hours for half of your worth with the risk of getting fired. That's no risk at all compared to being a founder, you should be grateful they gave you that (pre-dilution) 0.015% as employee number 1. After all you get ot build something great!

[megous]

Which is funny, given that much of their risk is probably just to reputation, if they are funded from angels and operate as a LLC, or whatever.

[gozur88]

I always assumed founders put at least some of their own money into the venture. Isn't that the norm?

Were I a VC I wouldn't back someone without skin in the game.