If being a founder/VC was truly more risky than being an employee - you'd see more homeless VC's and founders than employees, not just more millionaires - ie a spread either side.
Sure sometimes founders and angel investors take big risks - however often the money invested is other people's money!
So if you have a VC funded start up - the VC has persuaded other people to give them money they will invest on their behalf, and while there is a strong alignment with upside and VC renumeration - they still charge management fees come win or lose - and risk is spread across the fund.
Founders stock options are often aligned with VC's such that often they win with certain exit scenarios when the rank and file with ordinary options do not.
Under those scenarios I'm not sure either the VC's or the founders are really taking much more risk than the employees - as I'm not sure you see that many homeless VC's.
The real point here is that people who take the initiative ( to set up a company for example ) set the rules, and also often configure the rules to favour themselves - it's as simple as that. Isn't pretending otherwise window dressing/self-justification from people taking advantage of other people's passiveness?
Isn't it the same as the house in roulette - sure each spin the house is taking risk - but if the game is structured so the odds are in your favour - you are taking less risk than the customer.
It comes down to who is setting the rules of the game.
Sure sometimes founders and angel investors take big risks - however often the money invested is other people's money!
So if you have a VC funded start up - the VC has persuaded other people to give them money they will invest on their behalf, and while there is a strong alignment with upside and VC renumeration - they still charge management fees come win or lose - and risk is spread across the fund.
Founders stock options are often aligned with VC's such that often they win with certain exit scenarios when the rank and file with ordinary options do not.
Under those scenarios I'm not sure either the VC's or the founders are really taking much more risk than the employees - as I'm not sure you see that many homeless VC's.
The real point here is that people who take the initiative ( to set up a company for example ) set the rules, and also often configure the rules to favour themselves - it's as simple as that. Isn't pretending otherwise window dressing/self-justification from people taking advantage of other people's passiveness?