If you are an entrepreneur, then it is fairly easy for you to use a general rule of thumb to come up with the valuation you are likely to get for your startup — depending on the stage of the company (seed, series A and later stages) and the scale of success or the merit of your idea. And that is possible, thanks to numerous blog posts, tattling tongues and other new sources of information.
However when it comes to hiring employees at the early stages of a company, no one really has a clue about how they should be compensated — cash, equity or what combination of both? Why is that? Because a lot of the salary and equity-related data is never really shared by startups, argues Naval Ravikant, co-founder of startup funding market place, AngelList. The market, he points out is very opaque and as a result you don’t have much consistency in terms of who gets paid how much and more importantly how much equity an early stage employee gets.
To read the full, original article click on this link: Why is startup compensation so mysterious? — Tech News and Analysis
