Comment by manigandham
6 years ago
Employees get cash, that's the compensation like any other worker.
Why should equity be a default option? Most startups fail so that's like saying workers should get something that has a high probability of being worthless while suffering all the tax implications. If anything equity should be decreased. Startups are better off competing on cash and other benefits like work flexibility and increased responsibility.
That would imply that they make revenue, which is somewhat unfashionable.
You need cash to run a business, wherever it comes from. Otherwise you don't have a business in the first place.
You need engineering talent to run a tech business. Otherwise you don’t have a tech business in the first place.
Money comes from anywhere, tech talent is fixed in supply.
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