> And yet those early employees who joined before they were profitable took a risk, and likely below-market rates, and got equity. Because that’s one proven strategy a startup can use to try to find people who can get them to not-a-startup.
I was interpreting the original comment that kicked this off ("Would they have ever managed to hire anyone if they didn't?") as referring to their hiring practices now, not 15 years ago when they were first starting up. Granted I may have misinterpreted the nature of their remark.
Obviously back then, yeah, folks would probably have been given an equity stake.
So we're arguing different points.
What I personally don't know is if they were continuing to give out options to new hires to this day. Based on my own experience in a startup-now-going-concern, my bet is "no", given that it would no longer be strictly necessary to entice folks to join the company, but I could be wrong.
I definitely interpreted it the other way, owing to the "would they have ever" part. The original subthread is about their motivation for an exit. The existence of early key employees that got (potentially a lot of) equity is quite relevant to that topic, and the sentiment that it would have been harder to hire people in this industry without offering equity at a startup is not wrong.
I was interpreting the original comment that kicked this off ("Would they have ever managed to hire anyone if they didn't?") as referring to their hiring practices now, not 15 years ago when they were first starting up. Granted I may have misinterpreted the nature of their remark.
Obviously back then, yeah, folks would probably have been given an equity stake.
So we're arguing different points.
What I personally don't know is if they were continuing to give out options to new hires to this day. Based on my own experience in a startup-now-going-concern, my bet is "no", given that it would no longer be strictly necessary to entice folks to join the company, but I could be wrong.