[kinganurag]

> If a founder can't afford employees at market rate, they shouldn't be hiring yet. They could perhaps offer to take people on as co-founders -- with an appropriately equal share.

Brother, I have worked with both startup & MNC's and i can understand what you are trying to say but it is a bit harsh to say that if a founder can't afford employees at market rate, they shouldn't be hiring. Some part of me says you are right but other part says that some employee should have some faith. If I look from employees perspective its safer/more rewarding/less riskier to join as co-founder then getting market rate. I believe somewhere faith also counts :)

[jonbarker]

I would say the 'market rate' for the big tech cos cannot be applied to the financial analysis of hiring in startups because most startups have cash burn, and big tech is profitable. If you somehow negotiate a startup to pay you a google like salary you probably won't have much fun because you will be viewed as an even riskier hire than you were to begin with. There will be even more pressure to perform than there already was.

[raz32dust]

Faith is cool. But it needs to flow both ways. If you have faith in the person, make them a co-founder and give correspondingly respectable equity.

[hanniabu]

Not sure how you're viewing getting paid less as safer and less risky. Also, the parent is saying the issue is when an early employee is not considered a founder and isn't getting paid market rate. That's the downside of each of those points - no/little equity and no/little pay