The argument is only relevant to startups that have funding options; there are plenty out there that would need to work hard to get funding. However, if fundin

The argument is only relevant to startups that have funding options; there are plenty out there that would need to work hard to get funding. However, if funding is a realistic option, and the investor isn't detrimental in some way, it's a much better deal to give up some equity and take a salary of some sort. Much like selling 100% of the equity would be too extreme, selling 0% is also over aggressive. I know a few people who are pure bootstrapping right now, and the consensus seems to be that it's a better deal (for the founders personally) to have a salary and a little less equity.