The 2nd employee ever at Pinterest explains why becoming an early startup employee is a 'terrible' idea if you want to get rich shl
By liquidity, it'll be cut in half by dilution from future funding rounds.Plus, a lot of former early employees of successful startups sent me messages agreeing privately. So, while I started my company, Gumroad, in 2011, I don't think much has changed on this front from then until now.
I'm not saying you shouldn't become an early employee. Quite the opposite: I was the second employee of Pinterest, and if my stock had vested, I would have made about $40M in the recent IPO. . And what if Pinterest didn't work out? I would have dropped out of school to work at a failure . Would I have easily recovered? I'm not so sure.
So, I think we can do a few things. We can educate our early startup employees, like I have tried to do — regardless of the occasional pushback from prominent investors. And we can give them more reasons to come onboard.
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