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The tricks that companies have used to dilute engineers' equity and to have different classes of stock are coming back to bite those companies.

To be fair it’s mostly been the VCs learning how to extract more value and forcing that on the companies.

The VCs have naturally gotten better at what they do, which is bring returns to their LPs. The consequence is that they get more value from exits than they used to which comes at the expense of the employees and founders.

The founders agree to those terms though

They don’t really have a choice if they want funding. Also that’s why the terms are usually good for founders and it employees.

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