"The investors invests $500k NOW," Fair point - the value invested by the employee should be discounted, but: "usually with no ability to take their money bac

"The investors invests $500k NOW," Fair point - the value invested by the employee should be discounted, but: "usually with no ability to take their money back" Actually, the investors have more ability to take their money back than the employee. The investors can at least sell what's left of the company, while the investment by the employee is unrecoverable.