Launch HN: Compound (YC S19) – helping employees understand equity compensation • Hacker News Board

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#41

Post by kalbfled » Tue, Aug 06, 2019, 5:09 PM UTC

dnjdrbdhdbs wrote: post #34

kalbfled wrote: post #7

This pitch reminds me of those commercials for weed whackers where people are shown acting like replacing the string is on the level of rocket science. https://www.youtube.com/watch?v=p22T3ZypQtA After I left my last job, I had 3 months to decide if I wanted to exercise my options. I looked at the company's financial statements, compared them to publicly traded competitors, and made my decision. If I needed tax infor…

To some people, what you just described reads no different from Lebron James saying “dunking is as simple as shoving the defender out of the way, jumping above the rim and jamming the ball down into the net.”

That's a fair comment, but I'm certain I don't possess Lebron-like ability when it comes to equity analysis. For me, the moral of the story is that people should go to the source material--contracts, laws, etc.--rather than operate on tribal knowledge. I'm sure some people would find this service useful, but will it be enough to sustain a business? Time will tell.

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#42

Post by kalbfled » Tue, Aug 06, 2019, 5:13 PM UTC

situational87 wrote: post #35

kalbfled wrote: post #7

This pitch reminds me of those commercials for weed whackers where people are shown acting like replacing the string is on the level of rocket science. https://www.youtube.com/watch?v=p22T3ZypQtA After I left my last job, I had 3 months to decide if I wanted to exercise my options. I looked at the company's financial statements, compared them to publicly traded competitors, and made my decision. If I needed tax infor…

I think you got pretty lucky, I have been screwed out of my options twice now by shitty founders. God help you if the startup is successful and profitable, that just means they will get the really good lawyers to claw back equity by any means.

The company was not profitable, and I decided not to exercise my options. It was an eye opening experience when I started trying to look at the company objectively without the startup Kool-Aid flying around.

I get the impression that it is indeed all a very vicious game. Since I left, the remaining co-founder has been pushed out.

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#43

Post by jrdngonen » Tue, Aug 06, 2019, 9:44 PM UTC

simonebrunozzi wrote: post #29

jrdngonen wrote: post #25

Earlier quoted context omitted.

Thanks for these links. Thinking we will see amplification of this topic as employees, founders, investors, and hiring platforms bring more transparency to equity and compensation. Would love to hear any ideas that stick out to you.

If you're in SF, I'd be happy to chat over coffee - I have some ideas and suggestions for you. $HN_username @ gmail

Sent you an email!

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#44

Post by jrdngonen » Tue, Aug 06, 2019, 9:45 PM UTC

bit_4l wrote: post #33

This, if made right, is indeed helpful. I have some friends working at early stage startups without understanding esop, even some can’t distinguish options and shares.

Thanks!

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#45

Post by jrdngonen » Tue, Aug 06, 2019, 9:45 PM UTC

milesward wrote: post #32

I find the signup form hard to use on chrome/pixel 3; the "fill in the blank, tell us about you" area was not selectable for me.

Good feedback—we're fixing!

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#46

Post by freddieoduks » Wed, Aug 07, 2019, 12:23 PM UTC

ryanmercer wrote: post #40

kevinflo wrote: post #19

I'm shocked by the comments of those here that don't see why something like this must exist and don't see that there is tremendous financial upside for whoever cracks this. Employee equity can generate unbelievable amounts of wealth as well as unbelievable tax consequences/missed opportunities. The deck is mostly stacked against employees, and you're on your own navigating treacherous waters with little information.…

>I'm shocked by the comments of those here that don't see why something like this must exist and don't see that there is tremendous financial upside for whoever cracks this. Some of us don't live inside the Bay Area startup bubble. I've never worked for a place that has offered equity, I've worked for publicly traded companies and the government. For the vast majority of Americans (and the world) this is a situation…

> look at a list of the companies for the past few YC batches... there are some absolutely ridiculous ideas, most of these companies will fail miserably and would NEVER have been seeded during a recession

Out of curiosity, what is the problem with people trying "ridiculous' ideas? Airbnb and Uber were considered ridiculous at the time and look how that turned out. Sometimes ridiculous ideas can turn to fantastic companies that add economic value to the world. The opportunity cost of not chasing these ridiculous ideas is worse than otherwise if you ask me.

Re: Launch HN: Compound (YC S19) – helping employees understand equity compensation

#47

Post by CindyBiSV » Sat, Aug 10, 2019, 9:01 PM UTC

ryanmercer wrote: post #40

kevinflo wrote: post #19

I'm shocked by the comments of those here that don't see why something like this must exist and don't see that there is tremendous financial upside for whoever cracks this. Employee equity can generate unbelievable amounts of wealth as well as unbelievable tax consequences/missed opportunities. The deck is mostly stacked against employees, and you're on your own navigating treacherous waters with little information.…

>I'm shocked by the comments of those here that don't see why something like this must exist and don't see that there is tremendous financial upside for whoever cracks this. Some of us don't live inside the Bay Area startup bubble. I've never worked for a place that has offered equity, I've worked for publicly traded companies and the government. For the vast majority of Americans (and the world) this is a situation…

Great to see such candid comments and this clearly shows you actually really care about this startup's mission "Compound is entirely focused on helping you—the employee—understand and manage your equity."

(Full disclosure: I've been following this founder for a while to see him do great things)

"there are some absolutely ridiculous ideas, most of these companies will fail miserably and would NEVER have been seeded during a recession"

So, to state the obvious here, recession is actually one of the best times to start companies or join solid startups to earn early-employee equity: fortune rewards the bold. And to some extent, that's the best concentrated personal wealth investment if you choose wisely which early-stage startup to join, especially when you don't have lots of cash sitting around to "buy the dip" from public market. So why not "join the dip" to take advantage of the recession years (golden era, blessing in disguise) to become equity rich coming out of the other side?

I believe it's true that many/most non-VC-funded startups don't give employee equity, but don't you think this situation actually also needs to change? Just like now remote/distributed work is all the rage, in 5-10-20-25yrs when most/many other companies also give employee equity for them to have the opportunity to "earn concentrated wealth" from 'investing in" what they work on at the company?

I see Compound's mission very aligned with employees at all kinds of companies of different time, start from a smaller focus market (VC-funded startups), to serving majority of the planet in the future :)