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Why many engineers value startup equity at $0

shablag.substack.com

1 points by eluusive · 3 comments

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eluusiveOP

An essay on why many engineers rationally value private-company equity at $0, focusing on information asymmetry, liquidity constraints, and incentive shifts in venture-backed startups.

KellyCriterion

Well, in fact, in most cases you should value it at 0 USD so you wont get any surprise :-D

  • eluusiveOP

    Fully agree. Although, I think reform of the system is beneficial both to investors and employees. I've seen investors lose significant amounts of money due to structuring things the way they have been insisting upon.

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