In a startup company, everyone should be on the same page. A founder with FU money is not on the same page as an engineer risking 2-3 years for a shot at FU money. I'm almost certain that investors would look at an FU money founder differently than a ramen founder.
As a startup engineer, I have done this. There are startups. There are corporations. Both have their place and their appeal. But I'll avoid corporate startups.
Because you really need to think of the reasons you were able to recruit those engineers with stock. Getting some value for that stock should be a consideration even for a flop. Success will probably take care of itself.
In a startup company, everyone should be on the same page. A founder with FU money is not on the same page as an engineer risking 2-3 years for a shot at FU money. I'm almost certain that investors would look at an FU money founder differently than a ramen founder.
As a startup engineer, I have done this. There are startups. There are corporations. Both have their place and their appeal. But I'll avoid corporate startups.