[TooKool4This]

It’s also incorrect to assume the expected value of the equity is zero. It’s much more useful to model it as E(x)=x*p(x), especially if you have some useful information on estimating p(x) that a person working at a startup might.

[scarface74]

Every startup thinks their company is going to be successful. No matter what the person thinks who is working their, they don’t know when the investors will cut their losses or when the market isn’t hungry for money losing startups and the VCs have to put off going public…like now.