It will definitely do that if FAANG comp compresses via lower equity issuances. The difference is startups generally can’t compensate at the level that FAANGs do or did.

And if discount rate stays higher, valuations will be much lower at the same revenue and growth rates than they had been in the past.

Of course this also implies the value of the dollars you earn is greater via opportunity of higher yielding investments.

There are also plenty of people unhappy with their FAANG jobs and don't want to trade it for a growth-chasing but ultimately unfulfilling startup. Those might be tempted to join a more robust startup.

Really? Why? I thought FAANG jobs were the closest thing to heaven on earth.

Okay, I am being obnoxious, but seriously, this is first I have heard of this. Do you know why? Surely it can't be the remote work thing. I would assume there has to more to this.

It's the constraints that come from working in a large team/company - the bureaucracy, the politics, the kind of work (focusing more on scaling vs fun features). A lot more features can be tried out in a startup due to their smaller scale, but not if growth is the only thing they care about.

Have you ever worked for a large company? Some people thrive there, others would rather die.

I assume it's mostly about that.

Those people already left or are on their way out soon, and there is a fresh crop every year

There are still many who are coasting along because there is no better alternative.

> It will definitely do that if FAANG comp compresses via lower equity issuances.

I think it will absolutely happen at least in short term. In fact in many cases already happened.

Personally, myself and several others I know don’t care to work on the problems that the big tech corpos are working on, no matter the salary. I make well below what I could because the things I work on are important contributions to society rather than helping an advertising business or help a closed garden become more closed.

> Personally, myself and several others I know don’t care to work on the problems that the big tech corpos are working on, no matter the salary.

While there are indeed people like you out there (don't care about the money)

You have to remember that you're more of the exception than the rule. The average developer is indeed very keen on optimizing their salary, and the possibility of a 50-100% raise by moving to a FAANG is undeniably a huge motivator.

Where do you work?

I’ve worked at several companies that have efforts in renewable energy and building energy management optimization. Reducing use and reducing peak demands mostly.

small crypto startups compete directly with faang because they can give their own liquid tokens alongside their base salary

given how big the VC funds for crypto startups are now I dont really see any talent acquisition situation improving for other tech startups, I see it getting more impossible

who wants below market salary and illiquid lottery tickets that you have to also put up your own money to redeem after 1 to 4 years of your life with a higher chance of getting zeroed after VCs get their cut first assuming the company doesnt fold? Given a choice

Nobody is going to work for Crypto startups now that the whole sector has imploded. And likely will go even lower from here. The days of profiting off ponzi scheme-esque tokens is over

most crypto assets can fall 99% from their initial trading price (like IPO price) before employees, founders and investors are at anything resembling a loss.

99.99% from all time highs

thats true for newly or to be launched crypto assets, and for existing established cryptos the fully diluted value (non circulating supply that company holds) is often many times the supply that “marketcap” sites show, and this is paid to employees and slowly increases the circulating supply

all while the cash compensation and bonus structure is now similar to FAANG

so I think you might be right that there are potential employees that don't understand that and can only relate to their or their friend’s attempts at day trading

A coin with a market cap of $1B that falls 99% is worth $10m. I'd love to see the startup with more than a few employees where that leaves anybody but the founders with anything.

And usually these lesser known tokens are thinly traded and the volume doesn't support actually cashing out large trades at market price

But yeah, if you trick enough ignorant retail investors to bid up your token, you can siphon their money to your employees. Certainly.

Death spirals happen. Its a risk that lockups expiring create ongoing dilution not met by increased demand. Thats not controversial or exclusive to crypto assets, the early liquidity is currently exclusive and competitive.

The liquidity pool technology fixes the liquidity issue and many company’s investors park additional capital in the liquidity pools. Sometimes even their unvested tokens sit in them or the generated liquidity pool shares is put in the vesting timelock smart contract, guaranteeing liquidity for others (which often increases confidence for holding, knowing that people can get out at any time)

Sprouting startups funded by what? All indications as I read are VCs becoming note risk averse right now.

scrappy startups not "lets plow 100 mil with no market fit" startups.