Someone who comes in for five is a potential founder anyway.
At 1 you have another fifty percent dillution from follow on financing, and the odds of any exit at all.
Exmployee 75 is making market, and a 75 man shop will not sell at 50. They are shooting for 500 or more, or failure.
A 5 person startup might sell for 5 to 10 direct, in which case your 1 just bought a nice car, after tax, but not a really nice car, and less than your risk adjusted forgone salary vs. Being a soulless corporate drone in defense, or maybe number 75 at a well funded tech company.
At 1 you have another fifty percent dillution from follow on financing, and the odds of any exit at all.
Exmployee 75 is making market, and a 75 man shop will not sell at 50. They are shooting for 500 or more, or failure.
A 5 person startup might sell for 5 to 10 direct, in which case your 1 just bought a nice car, after tax, but not a really nice car, and less than your risk adjusted forgone salary vs. Being a soulless corporate drone in defense, or maybe number 75 at a well funded tech company.