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Employees get cash, which has the lowest risk of the three players (no cash for founders, cash loss for a VC). You reduce VC earnings by having more VC competi
by conanbatt 8y ago
Employees get cash, which has the lowest risk of the three players (no cash for founders, cash loss for a VC).
You reduce VC earnings by having more VC competition.
You increase founder earnings by having more VC competition as well. Also by providing a better environment for success (that VC's provide, like it or not)
You increaes employee payout by the number of competing startups for talent-> more VC and more founders better deals for employees.
There are things that tip the scales amongst the players, but its not true employees lose out as a whole: the majority of minted millionaires in this game are employees, not founders. Even more than VC's. VC's meanwhile have not great returns as an entire industry. And in the founders game, most lose out with detrmient to health, status, or family fortunes.