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Our $100M Series B

oxide.computer

51–60 of 522 posts

Re: Our $100M Series B

#51

Lots of praise not much skepticism, so what is the exit here? $100M is a lot of money investors want to see returned of the total amount raised of almost $200M? Remember Oxide is VC backed so there must be some strings attached here, is it an IPO or an acquisition for an exit or just staying private?

I don't get it. They're a hardware integrator with a secret sauce management layer on top. I like anything on-prem but this seems a bit hyped. Slick website and appears to have a very good team though.

Re: Our $100M Series B

#52
post #8

Isn't Oxide kind of like Oracle now building polished vertically integrated monster machines ? A bit humorous from that perspective given Cantrills dislike for Larry Nevertheless cool company and product.

> Isn't Oxide kind of like Oracle now building polished vertically integrated monster machines ?

Oxide is kind of like Sun Microsystems, building polished vertically integrated monster machines, e.g. Sun E10k.

* https://en.wikipedia.org/wiki/Sun_Enterprise

Re: Our $100M Series B

#53
post #37

Earlier quoted context omitted.

They have since updated it slightly > Since originally writing this blog entry in 2021, we have increased our salary a few times, and it now stands at $207,264. We have also added some sales positions that have variable compensation, consisting of a lower base salary and a commission component.

so basically everything converges to having specific reasons to have different salary schemes.

One exception, for sales. I don't see how they could have done it differently.

We have a "one rate per level" rule. The rates are published, and so are the definitions of the levels, and everyone's level (i.e. indirectly you can know everyone's salary)

Worked great, untill we started to look for sales. Doesn't work. They only know incentive-based schemes.

So now they have an incentive-based scheme just for the sales, which is (essentially) budgetted from their stock-option package (that everyone gets). I.e. they benefit from growth a little bit earlier and directer.

If we hadn't done that, we wouldn't have a sales department.

Re: Our $100M Series B

#55
post #41

What do they need so much capital for?

I think the downvoting on you is a little harsh. TFA does allude to it, but doesn't explicitly answer your question. I presume the implicit answer is here:

> With growing customer enthusiasm, we were increasingly getting questions about what it would look like to buy a large number of Oxide racks. Could we manufacture them? Could we support them? Could we make them easy to operate together?

i.e. they need the capital in order to be able to satisfy large orders on sane timeframes - but that's very expensive when you're a hardware business.

Re: Our $100M Series B

#56
post #13

Everyone at Oxide makes the same salary: >We decided to do something outlandishly simple: take the salary that Steve, Jess, and I were going to pay ourselves, and pay that to everyone. [ https://oxide.computer/blog/compensation-as-a-reflection-of-... ] Does everyone at Oxide have the same equity grant?

> Does everyone at Oxide have the same equity grant?

I thought I saw this question answered in a previous thread and the answer was basically “no”, but the question has been avoided a lot.

Aspects of equity compensation would inherently need to be different over time due to valuation, fundraising stage, and so on. However I always thought it was strange that they made a big deal about paying everyone the same base salary but then were silent on the equity comp strategy. Everyone knows that in a job like this the total comp is important.

The old Oxide compensation discussions were interesting. There was discussion about how they thought candidates asking about compensation to be something of a negative signal because they wanted people who weren’t in it for the money, basically. I heard this from a now ex-employee of Oxide who was describing how to navigate their hiring process, so take with a grain of salt.

EDIT: I checked their website again. The compensation link goes to a blog post ( https://oxide.computer/blog/compensation-as-a-reflection-of-... ) which has this section about equity:

> Some will say that we should be talking about equity, not cash compensation. While it’s true that startup equity is important, it’s also true that startup equity doesn’t pay the orthodontist’s bill or get the basement repainted. We believe that every employee should have equity to give them a stake in the company’s future (and that an outsized return for investors should also be an outsized return for employees), but we also believe that the presence of equity can’t be used as an excuse for unsustainably low cash compensation. As for how equity is determined, it really deserves its own in-depth treatment, but in short, equity compensates for risk – and in a startup, risk reduces over time: the first employee takes much more risk than the hundredth.

Which doesn't answer the question.

Re: Our $100M Series B

#57
Isn't it sad we're not able to invest into most new tech companies these days, with private equity taking the lead. I don't blame the companies after seeing what going public entails, but still unfortunate.

Re: Our $100M Series B

#59

Earlier quoted context omitted.

Of course not, what's the purpose of asking such as silly question? Are you being snarky and suggesting that employees deserve the same upside that founders deserve?

Salary and equity have nothing to do with what you "deserve", only what you're able to negotiate.

Would love to engage in a discussion with you on this. How would you describe "deserve" in the sense of compensation? I agree with your premise that what you get is ultimately bound by the ceiling of the payer's generosity and your ability to negotiate.

But what sorts of things input into the function of "deserve"?

Re: Our $100M Series B

#60
God why do startup sites suck so much? Why do I need ChatGPT to cut through the marketing speak to understand what they are actually selling? I literally spent 5 minutes in the site trying to understand before giving up and asking GPT...

Cool 1999 aesthetics though

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