Like many animals which hunt in packs (e.g. wolves) humans obey a dominance hierarchy. The leader is at the top of the pyramid and is entitled to most of the s

Like many animals which hunt in packs (e.g. wolves) humans obey a dominance hierarchy. The leader is at the top of the pyramid and is entitled to most of the spoils of the kill, while those beneath the alpha settle for relative scraps. This has been self-evident though most of human history, but exists even today--witness the modern power law distributions of wealth even in advanced economies. Founders, in essence, reject the pyramids of established companies and try to create their own (the new company) with themselves at the top. This is why the myth of the startup was created by founders and investors--they need submissive employees to work at below market wages (initially) at the lower levels of the pyramid in order to support them at the pinnacle. Note that the purported benefits of working at a startup are always intangible and hard to quantify (read: things which don't cost the company any cash)--but the opportunity cost of working as an early employee at a startup is readily quantifiable and quite large: a huge loss in earning power in the short term, with only a lottery ticket's chance of winning in the long term.