
After Zenefits reprice, A16Z will make 1800% return while employees take 50% cut - Analemma_
https://www.theinformation.com/early-zenefits-investors-still-sitting-pretty
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green_safari
This is the benefit of risking your money when investing. You are in a
position to get your money back first (since you took the risk on the company
and the employees that you paid).

Many times this gamble doesn't pay off. There are plenty of investors that
lose huge amounts of money. I think they call it the 80/20 rule.

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st3v3r
That's not how it should work, though. And if you're in position to be first
to be paid back, how much of a risk is that, really?

And while we're at it, why do I care how much of a "risk" you took in the
first place? Do we want to reward someone for just having money to start with,
or do we want to reward people who actually do things? Wouldn't rewarding
those who actually do the work first send a much more positive message than
getting someone who already has a lot of money a little more?

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angryasian
>Wouldn't rewarding those who actually do the work first send a much more
positive message

Well employees do get paid a salary usually, hopefully somewhere near market
rate.

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st3v3r
Except startups are rather infamous for paying below market, with the idea
being that equity will make up for it if the company goes big. Yet, many times
the early employees, who are the reason the startup got to where it is many
times, get their equity diluted to crap.

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technofiend
I was curious about employee option pricing, but not curious enough to sign up
for the site in order to read the article. Sounds like strike's being cut by
half but total number of options aren't doubling to offset the haircut? Is
that right?

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a_small_island
This article is paywalled.

