This article talks a lot about the effects of preferences on the founders, but doesn't mention the employees, who get an even worse deal because their upside wasn't that big to start with.
Maybe at some point founders will start to refuse deals involving preferences, even at the expense of valuation and/or amount raised, in order to be able to offer their employees a better deal (and thus attract better employees).
Maybe at some point founders will start to refuse deals involving preferences, even at the expense of valuation and/or amount raised, in order to be able to offer their employees a better deal (and thus attract better employees).