Ask HN: Why are employee-owned tech companies so rare?

It seems odd to me that employee ownership is not more commonplace in the global tech world. Especially for companies that serve a small niche with a useful product that won't necessarily scale massively, why try and chase VC funding instead?

Particularly for techies outside the major global funding hubs, employee ownership seems to be a model much more aligned with building a sustainable business with the potential for greater employee satisfaction and a healthier culture.