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Unless you happen to hit the next Google or Facebook it's very unlikely that non-founders will make out on a startup so is it worth it for potential employees to consider equity when going over offers? 1% seems to be the "going rate" but after a few rounds of funding it's diluted so much that the company would have to sell for a ridiculous(200m+) amount for that to be worth it.

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  • 1% is a lot of equity for a non-management employee who would typically get much less
  • Even an exit at $200M wouldn't give most employees that much. A nice bonus but isn't going to buy you a house or make an earlier retirement.
  • You are right the the likelihood of return on equity is minuscule for most people. If you have the option definitely go for a higher salary and less equity.
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I don't see a rationale for the neg on this answer. Seems well thought out. – John Bogrand May 24 '11 at 23:45
@John, thanks I guess you can't please everyone! – user6603 May 25 '11 at 7:48
Good respond and pretty much confirms my thoughts on the matter. Most companies are using equity as a recruiting tool but in reality it shouldn't mean much to most. – Ryan Detzel May 27 '11 at 15:38

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