I’m an early employee of a company that was started out of a popular startup studio. Me and my team work incredibly hard getting our company off of the ground—doing everything that founders would do—yet the studio owns at least 60-70% of the company, with early employees owning no more than 1% each. The CEO probably doesn’t own a big chunk either, and it’s not like he works any harder than we do to entitle him to his greater share. Outside investors likely own any remaining amount.
Meanwhile, the studio owns an enormous chunk of the company for doing relatively nothing. While they provide office space stocked with snacks, occassional help across design, engineering, etc., and an umbrella brand that helps us in the marketplace, these efforts are certainly not worth 60-70% of what will hopefully be a massive company. It’s the empoyees that are pouring their heart into this company. I can’t help but feel some resentment.
The startup studio model feels broken.
Plese help me understand why this is ok.