>What I walk away with: $3,700,000 in cash >practically speaking, never need to work again Yikes, does someone want to tell him?
He lives in Alabama
I sold Baremetrics
41–50 of 521 posts
Re: I sold Baremetrics
#42>What I walk away with: $3,700,000 in cash >practically speaking, never need to work again Yikes, does someone want to tell him?
Tell him what?
Re: I sold Baremetrics
#43Earlier quoted context omitted.
Now that you mention it, you're right, maybe some of that extra $300k went to the employees? I don't know because I wasn't in the room. I'm curious how much money employees got, and why $3.7 million was enough when $2.9 wasn't.
That entire $300k went to employees. As for $3.7 vs $2.9...that was basically the number that, to oversimplify, would roughly give the outcome I wanted for "retirement" when it comes to investment interest over the next 50 years. Basically, it's the number I felt comfortable with to not instantly feel like I needed to get back to work in a few years.
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Re: I sold Baremetrics
#44>What I walk away with: $3,700,000 in cash >practically speaking, never need to work again Yikes, does someone want to tell him?
what, that's it's not enough? Sure if you plan on living in the Bay Area for the rest of your life but in most other places it's definitely true.
Re: I sold Baremetrics
#45Wait, so your investors lose money, your employees (probably just a few) got at most $80k, and you get to retire? I mean, congrats on the hustle, but I wouldn’t waste your time trying to make it look good for everyone else.
Re: I sold Baremetrics
#46Earlier quoted context omitted.
It averages out to $420k/yr. There's this sentiment on HN that "all you have to do" is get a job at a big tech company and you'll make a million dollars a year. It's idiotic, and not true. Yes, there are people who make $500k+ writing code in a cubicle for 40 hours a week. They are the vast, vast, vast minority compared to the people a) making $100-200k doing the same thing; b) making that $500k+ doing everything but…
To make those figures doing "ad work" at FB or Google you probably have to come in as a VP or higher, which already comes towards the end of a very long career arc.
So even more pessimistic than my already prone-to-pessimism self thought!
Re: I sold Baremetrics
#47I know there's a trope about the naive founder getting screwed by shifty-eyed VC sharks, but it really sounds like Josh screwed his investors and employees here. > I wanted them to at least get their money back, but ultimately, for the $4m purchase price to work, we’d need to ask them to walk on their [$800,000] investment. He clearly didn't want it very badly, then. Nearly $3 million wasn't enough? That's about $420…
Based on the numbers employees got 7.5% of the payout. There seems to be 5 current employees on LinkedIn and possibly some earlier employees who bought out their equity. That seems roughly a standard equity split for employees which just goes to show you how depressingly low the standard equity grants are for employees. As people say, don't join a startup to get rich unless you're the founder.
Re: I sold Baremetrics
#48Earlier quoted context omitted.
Depends on the employees and when they joined and if they exercised stock options or not. Big range from a few thousand to over $80,000.
$80k for how many years of work? Unless it’s one, I’m with the parent. I’m sure it’s all legal and ‘equitable’ according to the terms, but that’s peanuts of a return for somewhere between 4 and 7 years of work (based off a typical vesting schedule).
It's peanuts, but it's also REALITY. Few people get big windfalls working for startups as employees or even founders, but maybe you get a little bonus on top of your salary if there's an exit.
Re: I sold Baremetrics
#49I've always loved the transparency and frank writings by Baremetrics. > As part of the structure of the deal, Xenon guaranteed I’d take home $3.7m, regardless of what came up during due diligence Interesting, I wonder how this is structured - surely there are items that can come up during due diligence that are deal-breakers for Xenon, and surely due-diligence is performed before the contract is closed? > But they we…
A 4 million dollar exit is a failure for investors. They don't care about returns of a few hundred thousand dollars.
Re: I sold Baremetrics
#50Earlier quoted context omitted.
You're making a veritable crap-ton of assumptions here. Happy to talk about specific concerns, but not if you're going in to this with guns blazing looking for a witch to burn.
So what did employees get?
Salaries? https://baremetrics.com/blog/why-we-spent-250000
> We aren’t spending Silicon Valley-amounts on salaries, but we’re certainly not on the low end. From the perspective wanting my team to love where they work and not have to worry about money, I’m very happy with the salaries everyone gets.