On: My experience as the first employee of a Y Combina...

[vaksel]

"You're also mistaken in saying that an early hire will get 1 percent tops. This number varies by 30-40x, "

so the #1 and #2 employees are going to get 60% equity combined?

Or was that x supposed to be a % sign?

[mrshoe → vaksel]

One company might choose to give an early hire 20%, possibly even making them a cofounder. Another company might give an early hire 0.5%. Hence the 40x variability in the amount of equity given to early hires.

[dustingetz → mrshoe]

all equity isn't created equally -- .5% of google is worth vastly more than 20% of a brand new startup.

[rdl → vaksel]

Also none of my argument applies to a startup with one or more non technical non domain expert founders hiring a tech guy as employee number one. In that case he is a founder without the title and might get a founder level share. However I think those companies are generally born wearing the stink of death and nor worth consideration.

[mlinsey → vaksel]

"depending on where the company is and how early the hire is." In the case where a new hire gets 30%, presumably the company is early enough that they are basically joining as an additional co-founder. Certainly possible.