This is why I would never be an employee with a measly .5% unless: a. I wasn't ready to do my own startup or 2. I _really_ thought the company could be the next Google.
I do think this part is a bit wrong: "If you’re getting paid market value, then… Well, there’s no risk– and you shouldn’t be expecting much reward."
I don't think that's the right way to look at it. Working for a startup at your market rate is not the equivalent risk to working at an established company at your market rate. The floor can fall out at any point for almost any reason.
Also, a really great hacker doesn't have to settle for market rate salary alone. He could be at some other startup that's very early stage or simply values him highly enough to pay a market salary and give him a generous equity allotment.
I disagree on one point: I don't think startups are that much more risky than more "established" companies these days.
Established companies seem to fail or downsize reasonably frequently these days. The real question is if/when this happens, is it easier/harder to find the next opportunity if you've been a career "big enterprise" kind of person or have been working for startups?
You are right on the perception of risk, it doesn't matter if it's a startup or a bigco. The difference is you are working 60+ hours at a starup whereas you are working 20 hours of actual work if you are lucky at a bigco.
The 5-year failure rate of new businesses isn't the infamous 80 or 90 percent. It's about 55%. A big company job where there's a 45% chance that it will still be worth coming to work in 5 years would be considered very good.
If you remove the Google's of the world, most folks that will make FU money from a startup are the investors, founders, a handful of early employees (maybe), and some senior VP level folks.
I do think this part is a bit wrong: "If you’re getting paid market value, then… Well, there’s no risk– and you shouldn’t be expecting much reward."
I don't think that's the right way to look at it. Working for a startup at your market rate is not the equivalent risk to working at an established company at your market rate. The floor can fall out at any point for almost any reason.
Also, a really great hacker doesn't have to settle for market rate salary alone. He could be at some other startup that's very early stage or simply values him highly enough to pay a market salary and give him a generous equity allotment.