Should You Choose More Money or More Equity at a Software Startup?

Equity is ownership in a company.

Many internet startups offer the opportunity to be issued more equity in exchange for less salary.

You can win big by accepting equity -it's a how many Silicon Valley programmers got rich - but only if you get bought, go public and don't go out of business.

90% of all companies fail within 5 years.

So the best thing to do is take difference of potential salary and imagine placing it on a roulette wheel for one spin on a corner bet. If you feel comfortable losing that amount of money in one spin, then take the equity. Else, ask for a higher salary.