[LRUG] Looking to meet...

[Paul Robinson]

On 15 Sep 2011, at 12:11, Stevie Graham wrote:

> This is nearly always not true. It's unlikely you'll get a straight up chunk of equity in a startup.


I've managed to negotiate it almost every time if I'm being hired pre-"series A". I prefer joining at that point anyway, but if I were to go in after an investment round, I'd expect conversations to be more about options than equity at which point salary would have to be commensurate with what I can earn elsewhere (as well as being a fun gig of course!).


> It's common practise even for founders to have vesting periods. It's a way of protecting the other shareholders from a founder agreeing to do a startup and then bouncing after 3 months with 25% equity, leaving to others to slog it out for the same upside.


In my experience, it's more common in that scenario to dilute the shares of the party that's left, rather than to have a vesting schedule. I think it's horses for courses, although I suspect there might be tax advantages one way or the other.


> I have to say you have raised some good points, specifically exploitation is unfortunately too common, and I think the backlash is in part due to others not having been shafted themselves. I hope it never happens to them, it's very unpleasant.


Very. :-(