That all startup employees work 80 hour weeks for 50% below market salary is not something I think is true at all. I would like to see a source on that start-up

That all startup employees work 80 hour weeks for 50% below market salary is not something I think is true at all. I would like to see a source on that start-up employees (not founders) work significantly longer hours than other tech workers in the area. While I understand your mental math I also think it's a weird way to think about things, because it is very clear going in that working extra hours is not going to give you any extra stake in the company, so any employee who chooses to do so are obviously doing it for other reasons. Finally, $2M (which is for 10 employees in your example, not 1) would be considered a small round today.