The True Value of Notes Apps and Deciding Equity for Key Employees

The True Value of Notes Apps and Deciding Equity for Key Employees

Introduction:

In today's fast-paced world, we often find ourselves relying on notes apps, bookmarking tools, and other platforms to save our thoughts, ideas, and findings. However, many of us never revisit these notes, leading some to believe that these apps are where ideas go to die. Surprisingly, this may not necessarily be a bad thing. In fact, these apps serve as insurance for our ideas, allowing us to forget and move on to new things. This article explores the true value of notes apps and the importance of feeling safe in forgetting. Additionally, we will delve into the topic of deciding how much equity to give key employees in a company.

The Value of Notes Apps:

The primary purpose of notes apps is not to help us remember everything we jot down but rather to provide a sense of security in knowing that our thoughts and findings are preserved. By saving our ideas, we feel a sense of satisfaction and productivity, even if we never revisit them. This behavior stems from loss aversion, a concept explained by Daniel Kahneman in his book "Thinking, Fast and Slow." Our biological response to losses is stronger than our response to gains, leading us to assign value to our thoughts and findings. However, most of these ideas are not inherently valuable on their own. By recognizing this, we can alleviate the burden of trying to remember everything and focus on resurfacing what truly matters.

The Illusion of Value:

As we accumulate a vast number of notes and ideas, we often seek new apps and tools, hoping that they will enhance our productivity and organization. This constant search for the next best thing stems from a desire to find meaning and progress in our work. However, the reality is that most of our ideas and discoveries are not as valuable as we initially perceive them to be. Flipping through old notes can feel like sifting through stale garbage, as we realize that the true value lies not in the individual ideas but in the collective growth and learning they represent.

The Importance of Feeling Safe to Forget:

In order to truly let go of our notes and ideas, we need to feel safe in the knowledge that our memories were not in vain and that they will be there if we ever need them again. This sense of mental safety allows us to move forward and embrace new ideas without the fear of losing something valuable. As we acknowledge the fleeting nature of our thoughts and findings, we can find liberation in forgetting and focus on the present moment.

Deciding Equity for Key Employees:

In addition to exploring the value of notes apps, it is also crucial for companies to determine how much equity to give their key employees. According to industry experts, after a seed round, it is advisable to allocate around 10% to 12% of equity for the employee pool. The specific percentage allotted to each employee depends on their role and level of experience. Senior engineers may receive as much as 1% of the company, while business development employees typically receive a .35% cut. Mid-level engineers can expect .45%, while junior engineers and employees in marketing or design may receive .15% to .05%. It is important to note that longer vesting schedules are becoming more common, ensuring that employees are incentivized to stay with the company for an extended period and contribute to its long-term success.

Actionable Advice:

1. Embrace the concept of forgetting: Understand that not every idea or note holds immense value. Allow yourself to let go of the unnecessary clutter and focus on what truly matters in the present moment.

2. Evaluate the true worth of your ideas: Take a step back and objectively assess the value of your thoughts and findings. Recognize that the true value lies in the growth and learning they represent, rather than the individual ideas themselves.

3. Establish fair equity distribution: When deciding how much equity to give key employees, consider their role, experience, and contribution to the company. Implement longer vesting schedules to incentivize employees to stay and contribute to the company's long-term success.

Conclusion:

Notes apps serve as valuable insurance for our ideas, allowing us to forget and move forward without the fear of losing something valuable. By recognizing that not every thought or finding holds immense worth, we can embrace the concept of forgetting and focus on what truly matters in the present. Similarly, when deciding equity for key employees, it is important to establish fair distribution based on their role and contribution, while also implementing longer vesting schedules for retention. Ultimately, finding value and meaning in our thoughts and findings lies in the collective growth and learning they represent, rather than the individual ideas themselves.