Comment by Blackthorn
3 years ago
Some made up new equity class that isn't actually equity, and caps your upside? Are we seeing a new level of startup management greed? That smells pretty scammy.
Common advice is to value earlier stage equity at zero anyway, so how the heck are people credibly calling that worth 600k...
There are a handful of unicorns / decacorns that went poof and the BS equity turned out to indeed be BS. That’s why they have to do $300k base salary, because that’s low end of total comp at competing mega caps, without it they couldn’t sign anybody from there.
OpenAI will probably end up like UberATG where Microsoft bails out a handful of $10m-plus equity packages, some engineers transfer into MS and get partial recognition, and a bunch of engineers get laid off or sent to a competitor for basically zero. Good chance of this happening when sama has to scale up aggressively and flops.