Isn't that what venture capital supposedly promises. Workers who are vested in the company are hyper-motivated to see it succeed. In theory, it's a great idea.

Isn't that what venture capital supposedly promises. Workers who are vested in the company are hyper-motivated to see it succeed. In theory, it's a great idea. Who wouldn't love to be an early employee of the 'next Microsoft' and win the successful business lottery? In practice there are some very serious caveats: 1. Non-preferred stock may be rendered worthless after multiple rounds of seed funding. 2. Some stock come with additional restrictions. Such as requiring the person to maintain employment for an extended period of time. 3. Many can't afford the tax costs that come with exercising their options when they get the chance. 4. In some cases you may end up with a net negative of stock earnings after paying the taxes. 5. Exercising early can help avoid some of the tax pain but then you're essentially betting on the future success of a company with a high risk of failure. Basically, working for a startup at significantly below market salary is joining the game of high stakes poker for the rich. Except, unlike poker the game comes with a minefield of additional risks. If the employees were 'true' stakeholders working as a partnership then everybody wins. Unfortunately, that very rarely happens and sometimes relationships go sour during the death march to potential success. When money is involved, the only thing that guaranteed is that people will play fucky fuck games for an advantage if they think they can get away with it.