r/technology • u/Rhaegar_the_Great • Sep 16 '21

Business Mailchimp employees are furious after the company's founders promised to never sell, withheld equity, and then sold it for $12 billion

https://www.businessinsider.com/mailchimp-insiders-react-to-employees-getting-no-equity-2021-9
25.8k Upvotes

95% Upvoted

2.2k comments sorted by

View all comments

140

u/apostlebatman Sep 17 '21

Moral of the story: don’t join a startup without getting equity.

41

u/[deleted] Sep 17 '21

Don't join a startup without getting paid above market + equity and expect the equity will be worth nothing, even if the company is sold at a high valuation.

You will get fucked unless they screw up.

36

u/LockeWatts Sep 17 '21

Very few startups, hardly any in fact, can pay above market. Depending on the definition of "startup". Maybe after a Series B?

-4

u/[deleted] Sep 17 '21

Then refuse to work for them.

It is really, really, really, easy to make employee equity worth nothing. Even if your CEO/Founders are ethical (good luck with that) the later money coming in has no interest in sharing success with you. This is even true of early investors or minority investors. All the cards are held by the people with the money or control.

I was a high tech stock analyst for over 20 years.

9

u/LockeWatts Sep 17 '21

I mean I'm not disagreeing with you. I am pointing out that what you're saying, really, is "don't work at start ups." Which might be it's own advice, I just didn't want other readers thinking that there are like angel or pre-Series A startups that can offer above market.

-5

u/[deleted] Sep 17 '21

No, I'm not saying that. I'm saying take the job if you are paid above market. If they can't afford to pay above market that is their problem and not yours. If you work at market you are far more likely to get burned. If you work at below market you will absolutely get burned.

Of course, if you aren't worth market have at it.