There is no Benefit to Ramen Noodles
The Equity Compensation Trap: Why Startup Fantasy Rarely Becomes Reality
The entrepreneurial world often romanticizes the journey of founders who endure financial hardships, subsisting on minimal resources with the hope that their equity stakes will eventually lead to substantial wealth. However, research indicates that this narrative is more myth than reality.
The Reality of Startup Equity
While equity compensation is a common strategy for startups to attract talent without immediate cash outflow, its effectiveness is questionable. A study published in The Journal of Law, Economics, and Organization highlights that employees often harbor "market illusions" regarding the value of startup equity . . .
