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by yjftsjthsd-h
858 days ago
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> Are you really asking why companies take risks on new projects that might not work out? Or expecting that companies can perfectly predict which projects will succeed? Uncertainty is fine; is mean that if the expected value[0] is below zero it's a terrible idea to do it. > Look at it this way: What if the developers were only paid after the product broke even and starts "delivering value". You think you're going to get a lot of developers signing up to work on a new project that might only pay them if they stick with it for a few years and it succeeds due to reasons that include things out of their control (like sales cycles, market moves, etc.)? Empirically yes; what you've described is close enough startup employees with low cash and high stock payments. [0] https://en.wikipedia.org/wiki/Expected_value |
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