Why is money worth more than time to the startup culture?

AAnonymous ·November 12, 2014 ·4 answers

The proof that money is worth more than time in startup culture is that an investor puts money into a startup and immediately gets a percentage of ownership, but if you put in time, then you just get sweat equity (equity that builds up and ends up being way less than investment in money), what is that about?

I always thought that time was worth more than money, but it seems like the startup culture suffers from being an even more slave-like culture than corporations are (at least they pay you). You get to work for little to no money, for 60+ hours a week, for just a dream that has a 99% chance of failure, all the while, your rich investors sit back and collect off of your blood, sweat, and tears.

Why do it? Is it to become a rich investor one day yourself and then collect off of other peoples backs too? I would like to know from the perspective of a so-called “founder”. Wow, these millionaires/billionaires really sold the world on this “startup” thing hook, line, and sinker, when it’s great for a young person with no financial obligations. But, for people who do, a startup is a train wreck waiting to happen.

And, why should anyone work for sweat equity, why not say off the bat that a co-founder will get so and so percentage? This sweat equity thing makes no sense for a smart business person to do. Someone told me in 4 years I will get 50% of the business, this is really shady ground and a huge risk, why would anyone bother? It means that they don’t trust me, so why would I trust them to deliver on the ‘promise’ of 50%? BS! >

Thanks for listening to my rant, I think I got it all out.

4 answers from the community

AAnonymous· Nov 12, 2014

Are you saying some dude offered you sweat equity to join his startup? Well my friend you've been scammed.

There are tons of walking dead startups in the valley where the founders churn through "cofounders" promising then equity that never comes to build them that Facebook or salesforce.com.

Basically you're either a real founder where you and a few friends start the company or an employee where you get PAID. If you're neither, you're a schmuck.

AAnonymous· Nov 12, 2014

Money represents time as well. Someone spent time earning it.

AAnonymous· Nov 13, 2014

It is worth having equity contract binding and legal ASAP.

We took six months to get the share allocation sorted in our start-up as everyone was running hard to build a business, but the sooner you focus on who has what and write it down clearly the better, as failure to organise this led to some tension.

AAnonymous· Nov 13, 2014

I think it comes down to how much you need something. If you won't survive without the money, then the value of it goes way up, much like if you won't get anywhere without an all-star VP of Sales, you won't get her without giving her a good chunk of stock options. Someone that agrees to work for seat equity either really trusts you, or is using your company to learn on your dime.

Why is money worth more than time to the startup culture?

4 answers from the community

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