In fact, the Microsoft IPO was so long ago that it didn't even start out at a billion. The IPO valuation was $519 million.
But what really established the options mentality is that Microsoft grew another 1000-fold to the peak of the dot-com bubble. Someone who joined Microsoft before the 1986 IPO got rich. But so did someone who joined after the IPO. In fact, even someone who joined in 1995 would still get rich. That's why there were tens of thousands of Microsoft millionaires.
The other key difference is that Microsoft was mostly-bootstrapped. They did take investment, but not enough of it to significantly dilute the founders and employees. At the time of the IPO, Bill Gates owned 45% of Microsoft, Paul Allen owned 25%, and Steve Ballmer owned 7.5%.
It's very different today. You get tiny slices of equity, often junior to the VC investment. The company is more likely to be bought out for cash than to IPO. And when you're bought out by a larger company, your options are either cashed out or converted into options on the larger company. Those options are highly unlikely to grow another 1000-fold.
But what really established the options mentality is that Microsoft grew another 1000-fold to the peak of the dot-com bubble. Someone who joined Microsoft before the 1986 IPO got rich. But so did someone who joined after the IPO. In fact, even someone who joined in 1995 would still get rich. That's why there were tens of thousands of Microsoft millionaires.
The other key difference is that Microsoft was mostly-bootstrapped. They did take investment, but not enough of it to significantly dilute the founders and employees. At the time of the IPO, Bill Gates owned 45% of Microsoft, Paul Allen owned 25%, and Steve Ballmer owned 7.5%.
It's very different today. You get tiny slices of equity, often junior to the VC investment. The company is more likely to be bought out for cash than to IPO. And when you're bought out by a larger company, your options are either cashed out or converted into options on the larger company. Those options are highly unlikely to grow another 1000-fold.