Are Founders Really 1000x More Valuable Than Employees?

Is it fair for founders to own about 100% of a startup while employee #1 only owns a few percent? Are founders 10-1000x more valuable than employees? The answers are: (1) Yes, it is fair. (2) Value doesn’t matter, timing does.

 

(Full Post: http://venturehacks.com/articles/employees-founders


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Babak Nivi

Babak Nivi is a co-founder of AngelList and Venture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture. He has worked on startups including Songbird, Grockit, and Kovio. He went to school at MIT where received 2 patents and published in Science.

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Filed Under:
Collection: Team
Category: Employee Compensation