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Ask The VC - What are typical compensation numbers? (askthevc.com)
14 points by jkopelman on June 4, 2007 | hide | past | favorite | 2 comments



There is something kinda funny about the numbers. I would expect to see more like 30-30-30 for founders, with 10 options pool. Maybe these are post-dilution numbers.


They are - I wouldn't expect any founder to take a $200k salary pre-dilution. Squares with the other article on news.YC (forgot the title...) about how a typical VC expects the founders to own 3-10% of the company at a liquidity event.

One thing I don't understand: why does any software startup take VC? 10% of $200M = 100% of $20M, but you're much more likely to find a buyer for the $20M two-guys-in-a-garage startup than the $200M startup with 2 dozen employees. It seems like VC doesn't increase your best-case outcome at all, but significantly decreases the chance that you'll reach your best-case outcome.




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