This post has managed to piss off everyone: employees who didn't realize founders were getting liquidity events while they're still sitting on their more-often-than-not valueless equity, and founders who feel they've earned it and don't like the implication they haven't.
Good point. Its interesting to see the comment thread here.
The part to me that I see as surprising is dismissal of the stress of taking VC money and being a founder. It is a job thats incredibly demanding. Which is eye opening to me that that's how people see it.
If it was so easy why aren't there more of them and more companies?
Early employee is tough - unless the company is on a significant trajectory the options should be valued at zero. That said being an early employee has other benefits such as being part of an interesting team and work problem. Definitely not a cushy job though (and nor is a founder) - both are significantly hard and for a certain personality type.
Everyone else go join a FANGG and get paid if thats what you are looking for comfy life benefits.
The main advantage of being an early employee is that you can leave.
Founders generally need to go down with the ship, early employees do not. If the growth trajectory starts to falter after 1.5-3 years, just get out of there and try another company. Let the founders clean it up (and you have equity in case they do).
Its a different risk profile and a different level set of responsibility. Founder has the entirety of the company on their shoulders. Early employee has a lot - but they can leave and join another firm if they want.
However my original comment was pushback about how easy it is to take VC money (comments I have seen) and how low-risk being a founder is - which is patently false.
It also reminded me about another post I read here, probably a few years ago, that outlined how stuff works. And my takeaway from that one, was yet another way that early employees get shafted, as they get diluted a lot, and other employees being brought on later end up with a better exit in the end. But I can't remember the details or find it.
The Phoenix Project should be required reading for anyone in the management chain of software development, IT, devops, etc. Especially non-technical CEOs.
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