I don't understand one point you raised. What downside risk is there to the employee if a company fails? The only risk is the cost of finding a new job which is offset by latitude in experience gained.
Why would you work for money instead of equity at a high risk venture? Because paying in equity pushes the risk onto the employee. Paying in cash takes the risk out. You are paid in full up front for your work. You'd take the job because it is paying you.
Startups pay in equity because they don't have cash.
Since then the lottery ticket aspect had taken grip with the labor market. However those people who view options as lottery tickets I find are subpar. Trend followers mostly. Those chasing Klondike gold.
Why would you work for money instead of equity at a high risk venture? Because paying in equity pushes the risk onto the employee. Paying in cash takes the risk out. You are paid in full up front for your work. You'd take the job because it is paying you.
Startups pay in equity because they don't have cash.
Since then the lottery ticket aspect had taken grip with the labor market. However those people who view options as lottery tickets I find are subpar. Trend followers mostly. Those chasing Klondike gold.