Comment on Understanding How Dilution Affects You At A StartupparentComments−spoon16OP14yHave you seen anything like what you describe that you can share?−notbitter14yUnfortunately not. The people who have that spreadsheet would find it very hard to hire if employees knew how the game was rigged.−notbitter14yActually, it looks like Fred Wilson did an example here: http://www.avc.com/a_vc/2011/10/liquidation-analysis-continu...Note that his example does not show a multiple on the liquidation preference, and it doesn't show how the early employees can get screwed even when the founders do well. But it's more realistic than Suster's infographic.
Comments
Have you seen anything like what you describe that you can share?
Unfortunately not. The people who have that spreadsheet would find it very hard to hire if employees knew how the game was rigged.
Actually, it looks like Fred Wilson did an example here: http://www.avc.com/a_vc/2011/10/liquidation-analysis-continu...
Note that his example does not show a multiple on the liquidation preference, and it doesn't show how the early employees can get screwed even when the founders do well. But it's more realistic than Suster's infographic.