Comment by seem_2211
6 years ago
I think the equity situation is bad, and only going to get worse. FAANG stocks have been on an absolute tear and VC firms have got more money to deploy than ever before.
If I were to bet on it, I think we'll see the tech industry move to a model that mirrors the financial world, with fixed year end bonuses, and no equity opportunities. That's what this thread is basically advocating for, even though right now it means working at Google and getting options.
$1b+ Venture Funds and employees getting generous equity grants don't match. I don't think VC is going away as an asset class anytime soon, and I don't think fund sizes will be dramatically (3-5x) smaller.
If anything, I'd say it's probably for the best for the average person working in tech. Most startup options aren't worth anything, and are highly illiquid.
I've been working in finance for years, and a couple of startups. From my own personal experience and from the experience of many people I know, you get stock but the stock is viewed as a 'nice little bonus' versus something that you expect to change your life.
In New York City:
Small tech startup -> very low salaries, questionable options
Fintech -> higher salaries (than tech), "nice to have bonus" type of stock options, plus a bonus
Banks and Hedge Funds -> For tech people, this is the "FANG equivalent". High salaries, big bonuses, and stocks that aren't theoretical. The pay is probably is not in the millions, but close to half a million if you're a Director or above on the tech side. Bankers always make more than tech, and tech is always viewed as a cost.
Now, Amazon and Google are expanding. I'm not sure how this will change the landscape.
I read a substantial part of this thread, and honestly I don't know a single person making 200K a year in equity as per some comments here.
Maybe I'm in the wrong part of the country.
Fintec