Hacker News new | ask | show | jobs
by nostrademons 1731 days ago
"In the not-so-distant past, start ups were pretty much the only avenue to secure a multiple-million dollar personal liquidity event"

I'm actually not sure this is true, and wondering if this was reporting bias. When a startup exits for a billion and all the employees get rich, you hear about it on the news, and you can do the equity calculation yourself based on public funding round press releases. When a big company quietly gives a multi-million-$ comp package to a valued employee, they have zero incentive to share that news with the rest of the world.

My wife grew up in Silicon Valley, and somehow all of her friend's parents have large real estate holdings. These were people active in the 70s-90s, big company employees, no exits. But there was one guy who had a beautiful house in the Saratoga foothills with an artificial waterfall between his two swimming pools; "Oh, his dad was a rainmaker at Intel." Or another friend of the family who had made some key inventions at HP, and retired early. Or the innkeeper we met in Alaska who had simply worked big companies in Silicon Valley, no exits, saved his money, but then when he turned 40 he bought a sailboat, sailed around the world with his family, then when he reached Alaska bought 2 old warehouses and converted them into a B&B.

2 comments

Considering the vast swathes of 1.5M homes across the Bay Area that were <$100k in the mid-70s, you didn't need to be anywhere near a millionaire to making a killing in real estate if you've been here 50 years.
That's very true in dollar terms, but wealth is owning 4 homes, or a couple apartment blocks, or being able to retire at 40, right? That's what most people are seeking. And if folks were able to achieve that in the 80s from being extremely-impactful ICs at big companies, maybe big companies were paying select employees more than the general public was aware?
Silicon Valley companies were paying salary and equity and were growing really fast.

Employee’s vested shares turned out to be worth a lot and so was the real estate employees bought.

The market was ripe and the people were talented. Not so sure there’s much to it then that.

I think it's true if you add the caveat "only avenue for an average person". Not everyone gets the big liquidity event in the startup game, but also very few people actually get multimillion dollar comp packages at well established post-IPO companies despite how much it seems to get discussed here.
The startups that succeed do not generally have average early employees. Remember that founding a startup and successfully taking it to a large exit is a decidedly non-average outcome; the average startup fails miserably.

I think that if you're seeking non-average wealth you should first strive to be non-average. There are a number of pathways to exceptional wealth, but all of them require being exceptional in some way.

Eh, I've been an early employee at several startups with successful exists. Each one had average early employees where the only thing they did that was truly exceptional was believe/commit in the cause early and stick it out. They helped the company get from point A to point B when others wouldn't. And they got great outcomes when liquidity arrived.

Being non-average definitely has better results, of course. But if you aren't, I do think there are still pathways for you at startups, while there generally speaking aren't at FAANG level companies.