A new kind of dealmaking is emerging in Silicon Valley, dividing startup employees into categories of haves and have-nots based on their desirability and trust in founders. Big Tech companies are favoring licensing technology over outright acquisitions, which has led to high-stakes situations for employees. Example: Windsurf's potential acquisition by OpenAI resulted in a split where top talent was retained, while others faced uncertainty. Investors emphasize the need for candidates to thoroughly assess ownership dynamics and the importance of transparency in governance to secure better long-term career prospects and equity.
As a new kind of dealmaking is sweeping Silicon Valley, forcing employees to be vigilant about how much trust they are willing to put in startup founders.
Those with the most desirable AI skills reap a windfall while those who remain are shrouded in uncertainty.
It's crucial to understand the ownership dynamics. You don't want to be working 100-hour weeks only to realize your options are underwater or your exit upside is capped.
Companies that are transparent and deliberate about governance tend to be better long-term bets, both for your career and your equity.
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