

How to Survive the Series A Crunch—From Someone Who Didn’t - kloncks
http://www.seanpercival.com/blog/2013/06/03/how-to-survive-the-series-a-crunch-from-someone-who-didnt/

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BHershewitz
This quote really grated on me: "At my company we managed to have 100 percent
retention until the very end. I was extremely proud of that and of my staff
for pushing forward in a world of uncertainty".

Pushing forward...further into the abyss, further into a negatively-sloped
opportunity cost curve, further into a start-up that'll scar their CVs and
render future employment more difficult? You may call that loyalty, but I call
it irrationality unless their equity compensation was adjusted for the risk
you imposed on them. These people weren't "your" staff; they were employees
tied to your company only by a contractual obligation. You didn't own them.
They weren't your property. And despite your ego and delusions of grandeur,
you weren't doing them favors by continuing their employment. Their tenure
shouldn't be celebrated, it should be emphasized as a cautionary tale.

~~~
jonathanjaeger
"...further into a start-up that'll scar their CVs and render future
employment more difficult". Let's not be so cynical. If you're a quality
engineer or designer I have a hard time believing being part of an ecommerce
startup that didn't make it as a scar that will render further employment
difficult. Loyalty and seeing things through during dark times can be
admirable in some employers' minds.

Sure, people might take a pay cut to work at a startup, but if they believe in
the vision that's perfectly fine. Are we going to criticize poets, musicians,
comedians, teachers, or other people who don't make high six-figure VP of
Engineering salaries because "they could have made more" in a cubicle
somewhere else?

