There are certain protections and more importantly, risk awareness & risk mitigation for investor-shareholders that employee-shareholders rarely have. They don'

There are certain protections and more importantly, risk awareness & risk mitigation for investor-shareholders that employee-shareholders rarely have. They don't have the information. The savy or bargaining power to negotiate the specifics of their contracts. Etc. That doesn't mean the equity is worthless. It's a few steps up from a verbal commitment but it has the same caveat, you need to trust the person its coming from.