Equity for Early Employees in Early Stage Startups: Shedding More Light on How Instagram Works

Kazuki

Hatched by Kazuki

Sep 06, 2023

4 min read

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Equity for Early Employees in Early Stage Startups: Shedding More Light on How Instagram Works

In the world of startups, equity distribution is a crucial aspect that can make or break the success of a company. Particularly in the early stages, when the company is just a mere idea, attracting and retaining top talent becomes a challenge. This is where the concept of equity for early employees comes into play.

When it comes to hiring the first key employees for a startup, there is no one-size-fits-all solution. It is an art rather than a science. These initial hires play a significant role in shaping the future of the company. Therefore, it is important to make them feel like founders, with a sense of ownership, emotional attachment, and responsibility towards the startup process.

One way to achieve this is by offering a substantial equity stake to these early employees. By doing so, they become more invested in the success of the startup and are motivated to contribute their best efforts. This not only aligns their interests with the company's growth but also fosters a sense of loyalty and commitment.

Similarly, Instagram, as one of the most popular social media platforms, has its own unique way of engaging users and determining what content they see. Shedding more light on how Instagram works can help users understand the algorithms and processes behind the platform.

Instagram does not rely on a single algorithm to determine what content users see. Instead, it utilizes a variety of algorithms, classifiers, and processes, each serving a specific purpose. For example, the Feed algorithm ranks posts based on what users care about the most, taking into account various signals such as post information, information about the person who posted, user activity, and interaction history.

In the Feed, there are five key interactions that Instagram closely monitors to determine the relevance of a post to a user. These interactions include the likelihood of spending time on a post, commenting, liking, saving, and tapping on the profile photo. The more likely a user is to take these actions, the higher the post will be ranked in their Feed.

Furthermore, Instagram's Explore feature aims to help users discover new content outside of their immediate social circle. The algorithms used in Explore consider signals such as post information, interaction history with the person who posted, user activity, and information about the person who posted. Likes, saves, and shares are the key actions that influence the ranking of content in Explore.

Additionally, Instagram introduced Reels, a feature designed to entertain users with short videos. Similar to Explore, Reels predominantly show content from accounts that users do not follow. The predictions made by the Reels algorithm focus on actions such as watching a reel all the way through, liking it, finding it entertaining or funny, and visiting the audio page.

Understanding how Instagram's algorithms work can be beneficial for users who want to maximize their visibility on the platform. However, it is essential to note that reaching a consistent number of people with every post cannot be guaranteed. The nature of the platform and user behavior mean that most followers will not see every shared post, as they tend to view less than half of their Feed.

Now that we have explored the concepts of equity for early employees in startups and the inner workings of Instagram's algorithms, let's delve into three actionable pieces of advice that can be applied in both scenarios:

  • 1. Foster a sense of ownership and responsibility: Whether you are a startup founder or an Instagram user, taking ownership of your actions and responsibilities is crucial. For startup founders, this means ensuring that early employees feel like stakeholders in the company's success. For Instagram users, it involves being mindful of the content you post and how it may impact others.
  • 2. Prioritize engagement and interaction: In both contexts, engagement and interaction play a vital role. Startup founders should actively encourage collaboration and open communication with early employees. Similarly, Instagram users should aim to engage with their audience by responding to comments, liking posts, and sharing valuable content.
  • 3. Stay adaptable and embrace change: Both startups and social media platforms are constantly evolving. To thrive in these environments, it is important to stay adaptable and embrace change. Startup founders should be open to feedback and willing to pivot their strategies if necessary. Instagram users should keep up with platform updates and adapt their content creation approaches to align with algorithm changes.

In conclusion, equity distribution for early employees in startups and the inner workings of Instagram's algorithms are two distinct yet interconnected concepts. The importance of making early employees feel like founders and the complexities behind Instagram's content ranking algorithms highlight the significance of ownership, engagement, and adaptability. By applying these principles, both startups and Instagram users can enhance their chances of success and achieve their desired outcomes.

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