At a $1 billion exit an undiluted 0.1% is $1 million pretax. Exiting at $1 billion is a VC sized homerun. $1 million pretax is not super rich. In the US, once taxes are paid it doesn't even make a person an accredited investor.
The opportunity cost of the 0.1% should be seen relative to things like a controlling 30% at a $5 million exit and similar exits unattractive to VC.
There seems to be a fallacious premise that the size of an equity grant is inversely proportional to the odds of a massive exit.
Comments
At a $1 billion exit an undiluted 0.1% is $1 million pretax. Exiting at $1 billion is a VC sized homerun. $1 million pretax is not super rich. In the US, once taxes are paid it doesn't even make a person an accredited investor.
The opportunity cost of the 0.1% should be seen relative to things like a controlling 30% at a $5 million exit and similar exits unattractive to VC.
There seems to be a fallacious premise that the size of an equity grant is inversely proportional to the odds of a massive exit.