[st3v3r]

Really? Give me one example where it doesn't fuck over the employees?

And don't say "they get to keep their jobs", cause if that's all that's needed for benefit, we might as well devalue the options to 1 cent, cause after all, they still got to keep their job.

[danielweber]

Shares need to come from someplace. Other people selling shares to the VC doesn't put any money into the company. The company needs to sell shares, and create shares if it doesn't have any left.

It's often abused, and easy to abuse, but you are making the story too pat by saying it exists only to screw over employees.