[jean_valjean]

The goal of the equity adjustments is to keep the expected value (at time of compensation) roughly equal.

The expected value of a $100k IOU from a startup is likely $10-20k.

The expected value of $100k in equity is (if priced reasonably) roughly $100k even though the value in case of default is $0.

If somebody was really adamant with me about IOUs being treated equivalent to cash, I'd ask if we could simplify and just pay all the founders equally, at the same time to get rid of the discussion.

[philwelch]

It's not a useful argument anyway. It's like arguing about what's the best sexual position: what you and your partner can agree on means infinitely more than what a bunch of total strangers on Hacker News think anyway.

[jean_valjean]

This isn't some search for objective truth. It's me sharing my opinions and the supporting rationale in the hopes that somebody might find them useful when they run into this situation in the future.

[philwelch]

And I'm just saying the opinions of people not personally involved in these kinds of equity decisions are of limited value, and that our discussion has easily reached that limit.