I think the endgame of SV is to become more like Hollywood. Not that that's necessarily a bad thing.
Typical startup raises a $500k seed round and is two founders + 2 senior engineers building the v1. If founders want Google-caliber people, they can't afford to pay $200k; the cash just isn't there.
So companies will have to start giving out real chunks of equity (5% or more) to early key hires. And "who you are" will matter even more than it does now (e.g. look what having Spielberg or another A-list director does to a movie's prospects, they can get the good actors, etc.)
I just don't see any other way this plays out. SV will become more like Hollywood.
Typical startup raises a $500k seed round and is two founders + 2 senior engineers building the v1. If founders want Google-caliber people, they can't afford to pay $200k; the cash just isn't there.
So companies will have to start giving out real chunks of equity (5% or more) to early key hires. And "who you are" will matter even more than it does now (e.g. look what having Spielberg or another A-list director does to a movie's prospects, they can get the good actors, etc.)
I just don't see any other way this plays out. SV will become more like Hollywood.