Another issue is that it makes you a slave to the company. You don't want to leave because you want that equity. It's almost like continuing to gamble at a casino hoping for that next big payout.
A friend of mine wouldn't leave because he had equity..even when management sucked and it was a terrible place to work. The company didn't get their next round of VC funding and went out of business withing 8 months.
My problem is that it's too easy for the management of these companies to drive the company into the ground with terrible ideas..and you, as a minor stake-holder have absolutely no power to stop it.
A friend of mine wouldn't leave because he had equity..even when management sucked and it was a terrible place to work. The company didn't get their next round of VC funding and went out of business withing 8 months.
My problem is that it's too easy for the management of these companies to drive the company into the ground with terrible ideas..and you, as a minor stake-holder have absolutely no power to stop it.