Fred Wilson started his talk on employee equity with a quote from Jeff Minsch (JLM) “If anyone goes to the pay window, everyone goes to the pay window”.
So everyone in a high-growth technology company started in a Cluster – Silicon Valley, Cambridge, UK – should have founder shares, founder employee shares or employee options. It is a key difference between these companies and the 99% of companies started which are owned by one or two people.
I remember asking such rich Indian kids (they could have been from any country but they would have to be rich) how do you feel that your family is so rich and yet the people who joined the company just after it was founded have no share in the capital wealth? That is they do not have rich kids… Guess no one had asked them the question. It is an interesting moral and economic question.
How many rich kids will Facebook produce and how many will be so rich that the wealth will be great even after a few generations? Will that be good for the inheritors twice or more removed from the founders? Guess that many great philanthropists come from these families.