Do you see more potential employees asking about your startup’s venture deal terms?
VCs can make or break a startup. Unfair deal terms can demotivate startup founders and remove any incentives that might be had from a fat exit. While these terms – jargon such as liquidation preferences, cap tables, full-rachet anti dilution – might be a turnoff, this author observes that more potential employees are asking about such information from startups in Silicon Valley. Apparently they realize these things matter.
I find though that’s not quite the case in Asia. From my observation, most employees don’t bother about these things. For them, the reward consists mainly of the monthly salary. Yes, some ask about equity, but they don’t go very in-depth.
I suspect that will change over the years though. What about you guys? What have you been seeing?
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