[jonathankoren]

The problem with this thinking is that you’re assuming that the founders are taking all the risk. They’re not.

Series As implode all the time, as do Bs. In the end the equity is worth nothing. If you’re lucky, you might walk away with it being almost a wash compared to taking a job at an established public company.

I think of the startup I was recently pitched. Two non-technical founders said they raised some money, and now needed to hire people to actually do the actual thing they promised they could do. These founders, brought nothing to the table beyond an idea, and not even an original idea, since I actually know three different startups already in that exact space that have an actual product and customers.

I laughed at him. Why should anyone join him? I’m taking as much risk as him, providing more value, and then get a tiny fraction of the equity? It’s basically a scam, because they’re not providing anything of value, and yet they’re the only ones that are going to walk away with anything after the inevitable aquihire.