Full disclosure: I work for Secfi (https://www.secfi.com) and we help employees understand and unlock the value of their startup equity.
The OP's point of view on equity compensation is quite common and - I believe - in principle a great way to think about an investment that one does not fully understand.
However, especially for somewhat later stage startups, a substantial amount of your wealth can be locked up in your equity or option grants! Valuing them at 0 might not be accurate and actually quite risky: you take the full risk of the startup succeeding or not!
Secfi offers a financing product for your equity that is non-recourse. It basically works like this: Secfi pays for the exercise of your options and transfers a - sometimes very substantial - part of the value of your equity to you to use as you see fit. For example, you can use the money as a down payment on a house or get that crazy Lamborghini your crypto-millionaire neighbour recently bought, too. :)
In exchange, you pay Secfi a small percentage of interest on the amount and a small equity fee if, and only if, the startup succeeds (read: has a successful exit). If the startup fails - and this is crucial - you get to keep all the money and Secfi takes the loss!
So, in this scenario, your equity has a much, much greater value than 0!
Secfi's website has a lot of information and tools to help visualise and understand the value of startup equity and might be a good way to start learning how it all works. (https://www.secfi.com/academy)
The OP's point of view on equity compensation is quite common and - I believe - in principle a great way to think about an investment that one does not fully understand.
However, especially for somewhat later stage startups, a substantial amount of your wealth can be locked up in your equity or option grants! Valuing them at 0 might not be accurate and actually quite risky: you take the full risk of the startup succeeding or not!
Secfi offers a financing product for your equity that is non-recourse. It basically works like this: Secfi pays for the exercise of your options and transfers a - sometimes very substantial - part of the value of your equity to you to use as you see fit. For example, you can use the money as a down payment on a house or get that crazy Lamborghini your crypto-millionaire neighbour recently bought, too. :)
In exchange, you pay Secfi a small percentage of interest on the amount and a small equity fee if, and only if, the startup succeeds (read: has a successful exit). If the startup fails - and this is crucial - you get to keep all the money and Secfi takes the loss!
So, in this scenario, your equity has a much, much greater value than 0!
Secfi's website has a lot of information and tools to help visualise and understand the value of startup equity and might be a good way to start learning how it all works. (https://www.secfi.com/academy)