Equity is Worth More Than Cash Because of Optionality
By Peter Schmidt-Nielsen Against “you should treat equity as worthless” A common refrain I hear when folks talk about evaluating offers from start-ups is “you have to treat the equity as worthless”, and also to treat equity in larger companies as being basically volatile (i.e. worse) cash. In this post I’ll argue that not only is $1 of equity 1 in a job offer worth more than $1 of cash, but often…